Naira Holds Steady as Official Market Keeps Rates Below Parallel Market Levels
The naira remained largely stable on Tuesday, supported by steady liquidity in the formal Nigerian Foreign Exchange Market (NFEM). The official closing rate, based on the volume-weighted average, settled at ₦1,448.03 per dollar on November 18, 2025 — about ₦5.60 lower than the previous day, a mild 0.39% drop.
In the parallel (black) market, however, the dollar continued to trade higher. Popular market trackers quoted prices around ₦1,455–₦1,460, leaving a gap of about ₦7–₦12 above the NFEM rate. Traders and bureaux de change say physical cash dollars still attract a premium compared to the official indicative rate used for larger institutional transactions.
Understanding the Rates
NFEM / NAFEM:
This is the official interbank market rate — the one big companies, banks and major importers use. It’s calculated using the volume-weighted average of actual FX trades for the day, making it the primary benchmark for formal dollar transactions.
Parallel Market:
These are informal cash-based street rates. They react quickly to demand for physical dollars, which is why they’re usually higher than the NFEM.
What’s Driving the Market Now
Investors and businesses are adjusting to better FX liquidity and lower interest rates following the Central Bank’s decision to cut its policy rate in September. The move, combined with improved foreign inflows and easing inflation, has helped the naira avoid the sharp volatility seen between 2024 and early 2025.
Read Also;
Dollar to Naira exchange rate today, November 17, 2025
What It Means for Nigerians
For importers and big businesses:
Accessing the NFEM window is cheaper since it offers the official weighted rate.
For small businesses and individuals:
Those who need physical dollars — travellers, students, remittance recipients using cash channels — still face the higher parallel market cost.
Bottom line:
The market is steadier, but the gap between official and street rates continues to shape how businesses and consumers experience the exchange rate day to day.
