Business
FX Market Strain Persists as Naira Maintains Tight Range
Nigeria naira exchange rate stability continues as official rates stay steady while parallel market gap reflects ongoing forex pressure
Nigeria’s foreign exchange market continues to reflect a pattern of constrained stability, with the naira maintaining a relatively tight trading range against the United States dollar in the official window, even as underlying demand pressures persist across the economy.
Also read: Naira Surges Impressively as CBN FX Liquidity Improves
In the Nigerian Foreign Exchange Market (NFEM), the naira has traded around ₦1,350 to ₦1,355 per dollar in recent sessions, with figures hovering near ₦1,351.59 and ₦1,350.74 in earlier trades, signalling limited volatility within the regulated segment.
This stability in the Nigeria naira exchange rate stability trend is largely supported by the Central Bank of Nigeria’s managed float system, which continues to influence pricing through periodic interventions and dollar liquidity injections aimed at smoothing market fluctuations.
However, the parallel market tells a different story, with Bureau De Change operators reporting dollar purchase rates of around ₦1,395, while selling prices range between ₦1,405 and ₦1,420 depending on location and transaction size.
The widening gap between official and unofficial markets, currently estimated at between ₦40 and over ₦60, highlights ongoing structural imbalances in foreign exchange supply and sustained demand outside formal channels.
Market analysts attribute continued pressure on the naira to strong import dependency, travel-related spending, and external financial obligations by both businesses and individuals, all of which continue to strain available dollar supply.
Nigeria’s reliance on crude oil earnings as its primary foreign exchange source also leaves the currency exposed to fluctuations in global oil revenue inflows, adding another layer of vulnerability to the exchange rate outlook.
Despite occasional periods of calm in official trading, sentiment among traders remains cautious, with expectations that the currency will remain sensitive to both domestic liquidity conditions and external economic shocks.
Also read: Pound Holds Steady Against Naira Amid Market Stability
Overall, current FX dynamics reinforce a familiar market reality: relative stability in the official window alongside persistent premiums in the parallel market, underscoring continuing pressure within Nigeria’s foreign exchange system.
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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