Naira Parallel Market Strengthens as Official‑Parallel Gap Narrows to N21.34

The naira gained 0.7% in the parallel market to N1,380/$ while the official‑parallel gap narrowed to N21.34/$.

On Friday the parallel market rate moved from N1,390/$ to N1,380/$ (NGN=X ticker), a 0.72% appreciation. In the Nigerian Foreign Exchange Market (NFEM) the indicative rate rose from N1,354.2/$ to N1,358.66/$ (USDNGN ticker), reflecting a 0.33% depreciation. The spread between the two rates therefore contracted to N21.34/$ from N40.8/$ on Thursday.

This week the official market saw the naira weaken by N9.66/$, with interbank FX deals dropping 41.7% to 346 from 594 the prior week and turnover falling 49.5% to N248.44 million from N492.57 million. Meanwhile the parallel market strengthened by N7/$. Nigeria’s benchmark equity index, the NGSE All‑Share (NGSEASI), slipped about 1.2% as investors weighed weaker FX inflows.

Dangote Cement PLC (DANGCEM.NG), the largest listed firm by market cap at roughly ₦12.3 trillion, accounts for ~44% of the NGSE total market cap of ≈₦28 trillion. Its share price edged down 0.4% on the day, mirroring broader risk‑off sentiment in the local equity market.

Cowry Asset Management noted that the naira will remain sensitive to central bank interventions and foreign exchange liquidity, with external debt service, sluggish oil revenue, and portfolio outflows posing upside limits.

Watch next: the CBN’s weekly FX auction schedule, crude oil price trends, and foreign portfolio flow data for clues on whether the parallel‑official gap will continue to compress.