Advertisements
The Nigerian naira traded within a narrow band against the United States dollar across both official and parallel foreign exchange markets on Wednesday, May 6, 2026, as the Central Bank of Nigeria (CBN) continued its hands-off approach to currency intervention.
Ejes Gist News reports that data from the Nigerian Foreign Exchange Market (NFEM) showed the local currency closing at an average of ₦1,365.40 per dollar, largely unchanged from Tuesday’s close, while the parallel market saw the greenback exchange at approximately ₦1,395 per dollar.
Also Read : Full List of Lawmakers Who Have Defected to NDC Since Peter Obi, Kwankwaso Joined
Advertisements
Here is a breakdown of the day’s exchange rate dynamics, market sentiment, and implications for businesses and individuals.
Official Market: Stability Amid Reduced Intervention
The official window remained calm, with the naira holding steady after a marginal appreciation in the previous session.
Advertisements
According to FMDQ data, the naira strengthened to ₦1,362 per dollar on May 5, rising from ₦1,367.5 recorded a day earlier. The rate has since stabilised near the ₦1,365 mark.
Also Read:
- Dollar to Naira Exchange Rate Today — April 20, 2026
- Dollar to Naira Exchange Rate Today — April 27, 2026
Key official market indicators for May 6, 2026:
| Indicator | Rate (₦/$) |
|---|---|
| CBN Indicative Rate | 1,362 |
| Spot Market Average | 1,365.40 |
| Buying Rate (Banks) | 1,362 – 1,374 |
| Selling Rate (Banks) | 1,365.40 – 1,376 |
Trading turnover in the official window increased by 19.4% to $71.6 million, indicating adequate liquidity despite limited CBN intervention.
Parallel Market: Dollar Trades at N1,395
Across Lagos, Abuja, and Kano, Bureau De Change (BDC) operators quoted the dollar slightly above the official rate, consistent with prevailing trends.
As of midday:
- Buying Rate: ₦1,385 per dollar
- Selling Rate: ₦1,390 – ₦1,400 per dollar
- Average Spot Rate: Approximately ₦1,395
A BDC operator in Lagos, who spoke on condition of anonymity, said demand remained steady without signs of panic buying.
“The dollar is not as scarce as it was six months ago. Demand for school fees and medical payments continues, but there is no major spike,” the operator said.
CBN Strategy: Reduced Direct Intervention
A key factor influencing the exchange rate is the CBN’s decision to scale back direct intervention in the foreign exchange market.
Ejes Gist News gathered that the apex bank injected about $150 million in April 2026, representing an 83% decline compared to March. The approach is aimed at preserving external reserves while allowing market forces to determine price levels.
A senior banking source said:
“The CBN is reducing pressure on reserves and allowing rates to adjust more naturally. The narrowing gap between official and parallel markets reflects this shift.”
CBN Position on Parallel Market
The CBN has maintained its long-standing position that it does not recognise the parallel market as an official channel for foreign exchange transactions.
Individuals and businesses are advised to access foreign exchange through authorised dealers, including commercial banks and licensed BDC operators.
A CBN circular stated:
“The Central Bank of Nigeria advises the general public that the parallel market is not recognised. All foreign exchange transactions should be conducted through authorised channels.”
Market Outlook
Analysts monitoring the naira project relative stability in the near term, supported by moderated demand and improved liquidity conditions.
Short-term outlook:
- The naira is expected to trade around ₦1,365 to ₦1,375 in the official market.
- The parallel market may fluctuate between ₦1,390 and ₦1,405.
Medium-term outlook:
- External reserves and global oil prices remain key variables.
- Increased diaspora remittances or capital inflows could support further appreciation.
Persistent demand for foreign exchange to fund education, healthcare, and imports continues to exert underlying pressure on the currency.
Exchange Rate Snapshot – May 6, 2026
| Market | Buying (₦) | Selling (₦) |
|---|---|---|
| Official (NFEM) | 1,362 – 1,374 | 1,365.40 – 1,376 |
| Parallel (BDC) | 1,385 | 1,395 – 1,400 |
Disclaimer: Exchange rates are based on data from FMDQ, CBN publications, and BDC surveys. Actual rates may vary by location and financial institution.
