Nigerian Naira Weakens Against Dollar as Official Rate Hits ₦1,464.49

Central Bank data shows local currency depreciation amid continued black market activity

LAGOS — The Nigerian naira declined against the US dollar in official trading last week, according to exchange rate data released by the Central Bank of Nigeria (CBN).

The official forex trading portal showed the naira closed at ₦1,464.49 per dollar on Friday, December 19, 2025, down from ₦1,457.84 the previous day, representing a depreciation of approximately ₦6.65.

Despite the CBN’s 2023 unification of all foreign exchange market segments, parallel market activity persists, with the naira trading at approximately ₦1,455 per dollar on the black market, according to market sources.

The current exchange rate environment follows a significant policy shift announced by the apex bank in June 2023, when it collapsed all forex windows into the Investors and Exporters (I&E) window and reintroduced the “Willing Buyer, Willing Seller” model.

Under the framework outlined in a circular dated June 14, 2023, the CBN eliminated market segmentation and established operational guidelines for forex trading. The policy allows applications for medical expenses, school fees, personal travel allowances, and small business transactions to be processed through deposit money banks.

Key provisions of the framework include trading hours from 9 a.m. to 4 p.m. Nigerian time, order-based two-way quotes with a ₦1 bid-ask spread, and central counterparty clearing for all transactions. The operational rate for government transactions is calculated as the weighted average of the previous day’s executed trades at the I&E window.

The policy effectively allows the naira to float freely against foreign currencies, with market forces determining the exchange rate rather than direct central bank intervention. In a free-floating regime, currency values are determined by supply and demand dynamics in the foreign exchange market.

The CBN indicated that additional operational guidance would be communicated to authorized dealers and the public as needed.​​​​​​​​​​​​​​​​