The Nigerian naira began the first trading week of May on a relatively stable note against the US Dollar, maintaining a narrow range across both official and informal foreign exchange markets.
At the Nigerian Foreign Exchange Market (NFEM), the currency is currently exchanging at about ₦1,375.98 to the dollar. Early trading on Monday, May 4, 2026, showed only slight movements, with the naira briefly touching ₦1,376.00 before settling back, marking a marginal improvement from the ₦1,375.65 recorded earlier in the day.
Activity at the official window reflects cautious optimism among market participants, with the Central Bank of Nigeria (CBN) continuing efforts to support liquidity and stabilise the currency amid steady demand.
In the parallel market, however, the dollar continues to trade at a premium. Bureau De Change operators in key locations such as Lagos and Abuja are quoting an average buying rate of around ₦1,410 per dollar, with variations depending on transaction size and location.
The relatively narrow spread between the official and parallel markets signals ongoing attempts to align both segments, even as demand for foreign exchange remains elevated due to trade obligations, travel needs, and other offshore payments.
Other major currencies also showed notable activity in the informal market. The British Pound is trading at approximately ₦1,720, while the Canadian Dollar is hovering around ₦1,035, reflecting continued interest from travellers and import-dependent businesses.
Analysts say the naira’s current performance underscores a delicate balance in the market, supported by regulatory interventions but still exposed to external and domestic pressures. Key among these are global oil price trends — a major source of Nigeria’s foreign exchange earnings — and policy decisions affecting money supply and interest rates.
As the week progresses, traders are expected to monitor liquidity levels and transaction volumes closely to gauge whether the naira can maintain its current range or come under fresh pressure as demand typically rises toward the middle of the month.
What the rates was last Friday
The Nigerian naira began the new month with slight movements against the US dollar, showing signs of stability across both official and parallel foreign exchange markets in early trading on Friday, May 1, 2026.
Read more: Naira opens May with narrow fluctuations today, May 1
Securities Exchange indicated that the currency opened around N1,374.69 per dollar. This follows minor volatility recorded in the closing sessions of April, with the previous day’s rate settling close to the ₦1,375 level.
Analysts say liquidity injections by the Central Bank of Nigeria continue to play a crucial role in keeping the naira within a stable range, even as demand persists for trade-related foreign exchange transactions. Early session activity showed a narrow spread between the high and low rates, reflecting cautious market sentiment at the start of the month.
In the parallel market, the naira traded almost at par with the official rate, with Bureau De Change operators in key cities such as Lagos and Abuja quoting between ₦1,374 and ₦1,376 per dollar.
This near convergence between both markets remains a notable development, reducing opportunities for arbitrage and speculative trading, while improving overall transparency in the foreign exchange system.
