By Kolawole Omotola Olaide
The Nigerian naira maintained relative stability against the United States dollar in the parallel foreign exchange market on Tuesday, August 25, 2026, with the dollar trading at about N1,390 for buying and N1,400 for selling across major Bureau De Change (BDC) markets.
Information gathered from BDC operators showed that dealers were purchasing one US dollar from customers for approximately N1,390, while those seeking to buy the currency were paying around N1,400.
The relatively narrow gap between the buying and selling rates points to continued stability in the parallel market, even as demand for foreign exchange remains strong among importers, manufacturers, international travellers, students making payments abroad and businesses with overseas obligations.
Currency dealers attributed the stability partly to improved liquidity in the official foreign exchange market, which has helped reduce pressure on the parallel market.
However, exchange rates in the black market are not fixed and can vary depending on location, the volume of a transaction and the individual BDC operator.
Dollar-Naira Black Market Rate
As of Tuesday, August 25, 2026, the prevailing parallel-market rate was:
Currency| Buying Rate| Selling Rate
US Dollar (USD)| N1,390| N1,400
At these rates, anyone selling $100 would receive approximately N139,000, while purchasing $100 would require about N140,000.
For larger transactions, $1,000 would fetch approximately N1.39 million when sold, while buying the same amount would cost about N1.40 million.
Naira Maintains Stability.
The latest figures suggest that the naira has continued to hold its ground in the parallel market despite persistent demand for the dollar.
Market watchers said developments in the official foreign exchange market, improved dollar availability and stronger external inflows have contributed to the relative calm.
Other factors supporting the naira include foreign portfolio investment, diaspora remittances and developments in Nigeria’s external reserves.
Despite these improvements, some individuals and businesses continue to turn to the parallel market when they need quick access to foreign currency.
What Determines the Dollar-Naira Rate?
Several economic factors continue to influence movements in the value of the naira against the dollar.
These include demand from importers and manufacturers, foreign currency availability, crude oil earnings, external reserves, diaspora remittances and foreign investment inflows.
Monetary policy decisions, foreign exchange reforms, inflation expectations and general economic conditions also play significant roles in determining exchange rates.
Official Exchange Rate
The official foreign exchange market operates under the regulatory framework of the Central Bank of Nigeria (CBN).
The Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of approximately N1,346.98 per dollar, putting the official rate below the prevailing parallel-market selling rate.
The difference between the two rates reflects the separate pricing mechanisms, liquidity conditions and regulatory structures governing the official and parallel markets.
Outlook for the Naira
The direction of the naira in the coming days is expected to depend largely on the availability of foreign exchange, crude oil revenues, investor confidence, external reserves, remittance inflows and monetary policy decisions.
A sustained increase in dollar supply through official channels could provide further support for the naira and reduce pressure on the parallel market.
However, continued strong demand for foreign currency could keep the dollar trading around its current parallel-market levels.
For now, the naira appears to be maintaining relative stability, with the dollar hovering around N1,400 in the parallel market as of August 25, 2026.
By Kolawole Omotola Olaide
