By Onu Okorie

Nigerian naira opened trading on Tuesday with continued stability at the official foreign exchange market, even as the gap with the parallel market segment persisted.
Latest available data from the Nigerian Foreign Exchange Market NFEM showed the naira exchanging at ₦1,332.44 per dollar on August 31, the most recent session for which figures are available.
The NFEM rate, recognised by the Central Bank of Nigeria CBN as the official exchange rate, is determined using the volume-weighted average of transactions conducted during the trading session.
As of September 1, available figures placed the official exchange rate between ₦1,332 and ₦1,338 per dollar, while parallel-market rates remained within the ₦1,390 to ₦1,415 range, with movements expected as trading conditions changed during the day.
Away from the official window, dollar demand in the black market pushed rates higher in some locations. In Lagos, Abuja and Kano, street traders quoted the dollar for as much as ₦1,410, representing a rise of about 4 percent from the previous day, while buying rates hovered around ₦1,400.
Despite the improved performance at the official window, the spread between the NFEM and street rates remains wide, underscoring the continuing divergence between Nigeria’s formal and informal currency markets. Exchange rates may differ depending on the location, transaction size and the channel used to buy or sell foreign currency, as banks, Bureau de Change operators and parallel-market traders offer varying rates based on prevailing demand and available dollar supply.
Market watchers say the naira’s near-term direction will continue to hinge on crude oil earnings, the Central Bank’s foreign exchange interventions, and overall dollar liquidity in both the official and parallel segments.