By Vincent Ekpo
The naira strengthened to N1,380 per dollar in the parallel market on Friday, improving from N1,390 per dollar recorded on Thursday.
In contrast, the local currency weakened in the Nigerian Foreign Exchange Market (NFEM), closing at N1,358.66 per dollar.
Data from the Central Bank of Nigeria showed that the indicative exchange rate rose from N1,354.20 per dollar on Thursday to N1,358.66, reflecting a depreciation of N4.46 in the official market.
As a result, the gap between the parallel and official exchange rates narrowed significantly to N21.34 per dollar, down from N40.80 recorded a day earlier.
On a weekly basis, the naira depreciated by N9.66 per dollar in the official market. Market activity also slowed, with the number of deals in the interbank foreign exchange market dropping by 41.7 per cent to 346 transactions, compared to 594 deals in the previous week.
Similarly, turnover declined by 49.5 per cent to N248.44 million, down from N492.57 million recorded the week before.
Despite the pressure in the official window, the naira gained N7 per dollar in the parallel market over the same period.
Analysts say the currency’s outlook remains closely tied to central bank interventions and overall foreign exchange liquidity conditions.
In its weekly financial market review, Cowry Asset Management Plc noted that while recent gains point to short-term stability, factors such as external debt obligations, weak oil revenue inflows, and foreign portfolio outflows could constrain sustained appreciation of the naira.
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