The naira showed a mixed performance on Monday, with official market rates staying relatively stable while the parallel (street) market continued to trade weaker. This reflects the persistent scarcity of dollars amid strong demand from importers and retail currency dealers.
Key Rates (October 20, 2025)
Daily NFEM / CBN (Official Volume-Weighted Average): ₦1,467.43 per US$1
Interbank/Spot Market Quotes: ₦1,468 – ₦1,475 per US$1
Parallel / Black Market: Buy ₦1,480 — Sell ₦1,500 per US$1
Market Overview
The Central Bank of Nigeria’s official Nigerian Foreign Exchange Market (NFEM) rate — the daily benchmark used for official transactions — remained around the mid-₦1,400 range on Monday. Market data showed spot trading levels hovering between ₦1,467 and ₦1,475 depending on timing and liquidity.
Meanwhile, the parallel market continued to trade at a notable premium, with retail traders buying dollars at roughly ₦1,480 and selling between ₦1,495 and ₦1,500.
Reasons Behind the Persistent Gap
According to analysts and traders, the gap between the official and street market rates is primarily driven by limited dollar supply and strong demand from businesses, importers, and individuals. Despite the Central Bank’s policy adjustments — including a September reduction in the policy rate and ongoing foreign exchange market interventions — dollar scarcity continues to support a higher premium in the parallel market.
Implications for Nigerians
Consumers: Prices of imported goods and services may continue to rise as the exchange rate gap persists.
Businesses: Companies reliant on foreign currency could face higher operational costs if forced to source dollars from the black market.
Remittances: Families receiving money from abroad may gain more naira when exchanging through the parallel market, although official channels remain safer and better for large or traceable transfers.
Overall, while the Central Bank’s efforts have stabilized the official rate, the sustained pressure on the naira in the parallel market highlights ongoing foreign exchange supply challenges in Nigeria’s economy.
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