Nigeria’s foreign exchange (Forex) market closed last week with the naira largely unchanged in the official Nigerian Foreign Exchange Market (NFEM), while the parallel market continued to converge toward official rates.
The performance means the currency has remained within one of its narrowest trading bands of 2026, with the gap between official and parallel market rates shrinking to roughly ₦10. For importers, manufacturers, distributors and logistics operators entering June’s procurement cycle, the trend provides greater certainty around pricing, inventory planning and foreign exchange costs.
Market Snapshot (June 1, 2026)
| Market | Rate (₦/$) |
| Official NFEM | 1,375 |
| Parallel Market | 1,385 |
| Spread | 10 |
The narrowing spread reflects improved alignment between the official and parallel markets, reducing uncertainty for businesses that depend on foreign exchange to source raw materials, machinery, finished goods and other imported inputs.
How the Naira Moved Last Week
The official market remained largely stable throughout the week, while the parallel market strengthened modestly against the dollar.
| Date | Official Rate (₦/$) | Parallel Rate (₦/$) | Spread |
| May 26 | 1,374 | 1,397 | 23 |
| May 27 | 1,376 | 1,392 | 16 |
| May 28 | 1,375 | 1,390 | 15 |
| May 29 | 1,375 | 1,385 | 10 |
The data shows that while the official exchange rate moved within a narrow range, the parallel market gradually converged toward official levels. The result was a significant reduction in the spread between both markets, one of the clearest signs of improving market stability this year.
Compared with the sharp swings experienced during previous periods of forex scarcity, last week’s movement points to a more predictable environment for businesses making purchasing and investment decisions.
What’s Driving the Stability?
Several factors have helped keep the naira relatively stable in recent weeks.
Improved foreign exchange liquidity has enabled the market to absorb demand from importers and businesses more effectively. Continued reforms aimed at improving transparency in the foreign exchange market have also supported confidence among investors and market participants.
Foreign portfolio inflows, diaspora remittances and export earnings have contributed to dollar supply, helping to offset demand pressures. At the same time, stronger confidence in the official market has encouraged more transactions to flow through formal channels.
Related – Nigeria’s 2026 Forex Outlook: From Crisis To Managed Stability
The combination of these factors has helped reduce volatility and support a more balanced forex market heading into June.
What It Means for Businesses
The significance of last week’s forex movement lies less in where the naira is trading and more in the growing predictability of the market.
For importers, the narrowing gap between official and parallel market rates reduces uncertainty around procurement costs, making it easier to place orders, negotiate contracts and plan inventory. Manufacturers, many of whom rely on imported raw materials and machinery, now have better visibility on production costs.
The trend could bring some relief to distributors, retailers and logistics operators, whose pricing, freight and inventory decisions are often influenced by exchange-rate movements.
While the naira remains weak by historical standards, a stable currency can be easier for businesses to manage than one that swings sharply from week to week.
Industries Likely to Benefit
Several sectors are particularly exposed to foreign exchange movements and could benefit from continued stability.
These include consumer goods, pharmaceuticals, automotive products, electronics, industrial equipment and agro-processing.
For retailers and distributors, improved forex stability will support more consistent pricing, helping businesses avoid frequent price adjustments that can weaken consumer demand.
Forex Outlook for June
The naira is likely to remain relatively stable in June, supported by improving liquidity and a narrower gap between official and parallel market rates.
Barring a major shock to oil prices or a sharp surge in dollar demand from importers, the currency is expected to trade within the ₦1,370 – ₦1,400/$ range in the near term. Market confidence has improved in recent weeks, and current foreign exchange inflows appear sufficient to keep volatility contained.
However, the sustainability of this trend will depend on continued inflows from investors, exporters and remittances, as well as the market’s ability to meet growing demand for foreign exchange as businesses ramp up procurement activities during the month.
For now, the outlook points to stability rather than a significant appreciation or depreciation of the naira.
BuyerMetrics Bottom Line
The most important development in Nigeria’s forex market is no longer the level of the exchange rate but the increasing predictability of it.
Last week’s narrowing gap between the official and parallel markets signals a more orderly foreign exchange environment, giving businesses greater confidence in procurement planning, pricing decisions and supply-chain management.
For importers, manufacturers, distributors and logistics operators, a stable naira may prove more valuable than a short-lived appreciation. If liquidity remains strong and market confidence holds, June could offer one of the most predictable forex operating environments Nigerian businesses have experienced in recent years.
