Naira Rally Narrows FX Gap to Just N10 as CBN Targets $1bn Monthly Remittances
- The exchange rate gap between the official and parallel markets has widened as the naira has maintained a steady rise in both windows
- The exchange difference dropped as the naira staged a massive gain against the US and other notable currencies
- Due to the naira’s surge, the disparity between the official and parallel markets has grown to N10
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The disparity between the official and parallel markets drifted further, as the naira maintained its gains in all FX markets.
The naira exchange rate gap fell sharply as the local currency surged against the dollar.
Source: Getty Images
Naira Gains Across Markets
The dollar rate declined on Tuesday, September 9, 2025, as the market expected the US Federal Reserve to reduce rates after a disappointing job report.
The naira has been on a bullish rally in the absence of significant pressure from demand for foreign currency by Nigerian firms and other eligible users.
According to a report by Market Forces Africa, the naira debit card alternative also boosted the exchange rate at the parallel market, helping it gain traction.
CBN sets the lowest exchange rate
The US currency traded at N1,515 on Tuesday, September 9, 2025, market check revealed.
In the official forex market, the Central Bank of Nigeria (CBN) set the dollar rate at N1,506.0850 per dollar from N1,506.8433, after hitting an intraday high of N1,509.5000.
The apex bank’s forex update showed that the naira appreciated by 0.05% to N1,506.08 per US greenback, driven by robust naira demand and reduced speculative trading.
Gap between official and parallel rates
According to reports, the spot rate rose to N1,497 per dollar during the trading session, the lowest in 2025, showing the absence of US dollar demand.
Also, the naira appreciated by 0.61% in the parallel market, closing at an average of N1,515 per dollar.
Consequently, the gap between the official and parallel markets narrowed by N10.
FX inflows surge
Meanwhile, a prior report by Legit.ng disclosed that Foreign Portfolio Inflows (FPIs) on the Nigerian stock market rose by 354.4% to N609.73 billion in the first seven months of this year, against the N134.19 billion recorded in the same period in 2022.
The domestic and foreign transactions report issued by the Nigerian Exchange Limited (NGX) showed that FX inflow rose by 382.2% to N671.56 billion in the first seven months of 2025, relative to N138.97 billion in 2022.
Total FX flows rose by 369.2% to N1.281 trillion in the seven months of this year, as against N273.16 billion in 2022.
According to a Vanguard report, further analysis showed that total transactions at the NGX increased significantly by 240.8% to N6.008 trillion in seven months from N1.763 trillion in 2022.
The NGX report showed that domestic retail investors’ transactions rose by 311.6% to N1.988 trillion in 2025 from N482.79 billion in 2022.
Domestic institutional investors’ transactions rose by 171.9% to N2.738 trillion in 2025 from N1.0007 trillion in 2022.
CBN eyes $1bn diaspora remittances
The forex inflow surge has ignited some optimism in the Nigerian economy as the apex bank has now revised its expectations for diaspora remittances.
The CBN set an ambitious goal of $1 billion monthly from diaspora remittances.
On Tuesday, September 9, 2025, the governor of the CBN, Olayemi Cardoso, asked Nigerian banks to intensify support for the apex regulator’s efforts to raise diaspora remittances to $1 billion per month.
Source: Getty Images
He described the inflows as a strategic lever for FX stability and a larger economic boost.
Naira hits highest level in months at N1,497
Legit.ng earlier reported that the naira has surged to its strongest level in months, trading at N1,497 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The rally, supported by rising foreign reserves and increased dollar supply, has also been reflected in the black market, where rates continue to appreciate.
Analysts say this momentum could shift year-end forecasts for the local currency, which many expected to hover between N1,580 and N1,600 per dollar in 2025.
Source: Legit.ng
