The naira depreciated against the dollar on Monday, December 1, 2025, as year-end demand for foreign currency pushed exchange rates upward.
At the Nigerian Foreign Exchange Market (NFEM), where the official trading takes place, the naira dropped to N1,448.43 on Monday, against N1,446.74 recorded on Friday, November 28.
At the parallel market, bureau-de-change operators in Lagos, Abuja and Port Harcourt quoted the dollar at ₦1,470 (buying) and ₦1,475 (selling), a slight uptick from ₦1,465 last week as importers and holiday travellers increased their demand.
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Analysts attributed the mixed movement to two factors: constrained official FX liquidity, which continues to divert some transactions to the parallel market, and the CBN’s relatively stable policy direction after recent monetary adjustments aimed at slowing inflation.
The CBN has signalled a cautious stance on rate cuts, a move traders say is helping maintain a narrower official trading band even as informal market rates respond to seasonal pressures.
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Import-dependent firms and businesses with dollar-linked obligations face slightly higher costs if they rely on the parallel market, while remittance recipients and small traders may still benefit from steadier official-window pricing, provided they can access it.
Market watchers say the naira’s short-term path will depend on CBN interventions, oil earnings and remittance inflows through the remainder of December.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
