Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts

Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts

The Nigerian naira traded within a relatively stable range against the United States dollar on Friday, July 24, 2026, at both the official Nigerian Foreign Exchange Market and the parallel market, though analysts warn that increased dollar purchases by fuel importers could trigger further depreciation in the coming days.

Data from the official market showed the naira exchanging at approximately ₦1,369.92 to the US dollar at the Nigerian Foreign Exchange Market (NFEM), which serves as Nigeria’s official exchange rate benchmark. According to Central Bank of Nigeria data, the highest rate offered during trading was ₦1,370 per dollar, while the lowest rate stood at ₦1,365 per dollar. In the parallel market, commonly referred to as the black market, the dollar traded at around ₦1,420 per dollar, according to market trackers, with Bureau de Change operators buying at approximately ₦1,410 and selling at ₦1,420. Rates may differ slightly depending on location, dealer margins, and transaction volumes. Based on the prevailing official rate, $100 would exchange for about ₦136,992**, while **$1,000 would be worth roughly ₦1.37 million at the NFEM.

READ ALSO:

• Senate Bill Requiring Social Media Offices in Nigeria Gains Stakeholder Support at Public Hearing
• Army Declares Soldier Wanted Over Alleged Sale of Military Uniforms to Terrorists
• Igboho Launches Iru Ekun Security Network in Kwara, Vows to Reclaim Forests from Bandits

The naira is coming under renewed pressure as fuel importers increase foreign exchange purchases to build inventories, according to a Reuters report cited by The Punch. The Nigerian currency, alongside those of Ghana and Uganda, is projected to weaken against the dollar over the next week, while Kenya’s shilling and Zambia’s kwacha are expected to remain broadly stable. The anticipated depreciation is attributed to increased demand for foreign exchange by fuel importers who have been granted licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import refined petroleum products for the July–September period. Importers including AA Rano, AYM Shafa, Bono, NIPCO, and Pinnacle are building inventory for the quarter, requiring significant foreign currency purchases that are outpacing supply and creating downward pressure on the naira. A trader told Reuters that the local currency was likely to face downside risks as importers sought more dollars to finance fuel purchases. “We expect the naira to come under pressure, with downside risks skewed toward a depreciation as fuel importers front-load dollar purchases to build inventories,” the trader said.

The naira showed some strength earlier in the week as foreign exchange market activity surged dramatically. On Tuesday, July 21, **total turnover at the NFEM climbed to $1.5 billion**, up 87.63 per cent from $816.79 million recorded the previous day. The spike in trading volume lifted the naira on both official and parallel markets, with the dollar falling to N1,375.31 at the NFEM, representing a 0.35 per cent gain. The number of transactions executed at the NFEM also increased by 16.79 per cent to 313 on Tuesday from 268 the day before. The spread between the official and parallel market rates remained relatively narrow compared with previous years, reflecting ongoing foreign exchange reforms and improved market liquidity. The narrowing gap to approximately 1.8 to 2.38 per cent signals improving alignment between official and street prices, down significantly from historic highs. CBN Governor Olayemi Cardoso has credited ongoing reforms for pushing Nigeria’s net foreign reserves from about $3 billion to over $40 billion. Nigeria’s gross external reserves have continued to rise, reaching $51.743 billion, supported by crude oil earnings and stronger foreign portfolio investment inflows. However, analysts caution that reserve growth alone may not be enough to ease parallel market pressure if dollar demand continues to exceed official supply.

The Central Bank of Nigeria determines the official NFEM exchange rate using a volume-weighted average of transactions executed in the market, while parallel market rates are driven by demand and supply among currency dealers. It is important to note that the Central Bank of Nigeria does not recognize the parallel market, as it has directed individuals who want to engage in foreign exchange transactions to approach their respective banks. Rates at which individuals buy or sell forex may differ from published rates because prices vary by location, dealer margins, and transaction volumes.

Market observers noted modest fluctuations driven by supply conditions, demand from importers, and recent developments in the petroleum sector, including the resumption of naira-based sales at the Dangote Refinery. The Reuters projection comes amid growing concerns by downstream operators that continued fuel imports are increasing demand for foreign exchange despite rising domestic refining capacity. Businesses and individuals relying on foreign exchange continue to monitor these daily movements closely, as they directly affect import costs, remittances, and everyday transactions.

Dollar to Naira Exchange Rate Today: Naira Holds Steady as Fuel Importer Demand Mounts