Dollar to Naira exchange rate today, December 5, 2025

The exchange rate between the United States Dollar (USD) and the Nigerian Naira (NGN) remained stable on Friday, December 5, 2025, as the local currency held its ground across both the official and parallel markets.

Data from the FMDQ Securities Exchange, which oversees the official Nigerian Foreign Exchange Market (NFEM), indicates that the Naira is trading at N1,450.25 to the dollar today. This figure represents a continuation of the steady performance recorded earlier in the week, where rates hovered within the N1,448 to N1,450 band.

Official Market Performance
Trading at the official window opened with liquidity remaining relatively consistent. The intraday high and low rates showed minimal volatility, a trend that market analysts attribute to sustained interventions and improved transparency from the Central Bank of Nigeria (CBN). The closing rate of N1,450.25 reflects the market’s adjustment to supply and demand dynamics without the sharp fluctuations seen in previous years.

Parallel Market Update
In the parallel market, often referred to as the black market, the Naira exchanged hands at rates between N1,455 and N1,460 per dollar. Bureau de Change (BDC) operators in major hubs like Lagos and Abuja reported that demand has normalised, with fewer speculators driving up prices.

The spread between the official and parallel market rates has narrowed significantly, now sitting at a margin of less than N15. This convergence is widely regarded as a positive indicator of market efficiency and a reduction in arbitrage opportunities.

Economic Context
The stability of the Naira is supported by strengthening macroeconomic fundamentals. Nigeria’s external reserves have grown to approximately $44.56 billion, providing the CBN with adequate leverage to defend the currency. Additionally, recent reports from the National Bureau of Statistics (NBS) place headline inflation at 16.05%, a three-year low that has helped restore some confidence in the local currency’s purchasing power.
Market watchers expect the exchange rate to remain within this stable range as the year draws to a close, driven by increased remittances expected during the holiday season.