The naira held steady at the official foreign exchange market on Friday but continued to weaken in the parallel (black) market.
At the Nigerian Foreign Exchange Market (NFEM), also known as the Investors and Exporters (I&E) window, the dollar traded around ₦1,460/$1, showing only a slight dip from earlier in the week.
However, on the streets and in informal trading hubs, the naira traded much lower. Dealers in Lagos and other major cities sold the dollar between ₦1,495 and ₦1,515/$1, with some transactions reportedly reaching as high as ₦1,515/$1. This puts the average parallel market rate around ₦1,500/$1.
What this means for Nigerians
For importers and businesses transacting through official channels, the NFEM rate of about ₦1,460/$1 remains the benchmark. But for individuals and small traders who rely on street exchanges — whether for travel, remittances, or dollar-priced goods — the higher parallel market rate means rising costs.
Why the gap remains
The difference between the official and parallel market rates is mainly due to limited dollar supply in official channels and strong cash demand in the informal market. Despite recent monetary policy actions and interventions by the Central Bank of Nigeria (CBN), liquidity constraints and market sentiment continue to influence the spread.
Analysts say the CBN’s support for the official window has helped stabilise the NFEM rate, but cash-based dollar demand keeps the black market under pressure.
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Dollar to Naira exchange rate today, October 23, 2025
What to expect next
Market watchers are keeping an eye on weekly FX turnover, potential CBN interventions, and global dollar movements. If dollar inflows through the NFEM improve, the official rate may remain stable or even strengthen. But if cash demand stays high, the wide gap between the two markets is likely to persist.
