Naira Holds Firm Against Dollar Despite Festive Season Surge in Demand

On Christmas Eve, Tuesday, December 24, 2025, the Nigerian naira showed minor fluctuations against the United States dollar as trading commenced across both official and parallel foreign exchange markets.

Data from the Nigerian Foreign Exchange Market (NFEM) and checks at major Bureau De Change hubs indicated that the local currency remained largely stable, despite the seasonal surge in demand typically associated with the festive period.

At the official window, the naira traded at an average of ₦1,453.70 per dollar, slightly appreciating from the ₦1,461.50 recorded at the close of the previous session. Early morning trades saw the currency dip to ₦1,460.75/$ before strengthening later as liquidity conditions improved.

The Central Bank of Nigeria’s reference “mean rate” hovered around ₦1,454, reflecting relative calm in the official segment of the market.

A Lagos-based currency trader told Vanguard that the official market had demonstrated resilience despite higher demand for travel allowances and corporate payments. “Normally, this period puts serious pressure on the naira, but consistent interventions and inflows, particularly from diaspora remittances, have helped stabilise the market,” the trader said.

In the parallel market, the naira traded at a slight premium over the official rate. Checks at BDC outlets in Lagos and Abuja showed that the dollar was being bought between ₦1,465 and ₦1,475, while selling rates ranged from ₦1,480 to ₦1,490 per dollar. Retail demand for holiday-related expenses largely drove activity in the informal market.

Analysts note that the narrow gap between the official and parallel rates reflects the effects of ongoing foreign exchange reforms and convergence policies by financial authorities. They also highlighted that the relative stability seen in the final week of 2025 marks a departure from the sharp volatility observed during previous festive seasons.

Experts attributed the calm to improved transparency in price discovery under the NFEM and a more balanced supply-demand structure, which have helped curb speculative pressures on the naira.

As the year comes to a close, market participants anticipate the naira will trade within the ₦1,450–₦1,500 range, barring any major global economic shocks or sudden disruptions to oil prices and capital flows. For now, the naira appears poised to end 2025 on a steadier note, offering cautious optimism to businesses and investors alike.