The naira held steady on Wednesday, trading within a tight range across both official and parallel markets.
At the official Nigerian Foreign Exchange Market (NFEM/NAFEX), the dollar was quoted at about ₦1,468 per $1, while in the parallel (black) market, it traded between ₦1,480 (buy) and ₦1,495 (sell).
Currency traders said the market has remained relatively calm after the naira’s modest rebound earlier in October. They added that liquidity in the official window has slightly improved in recent weeks, helping to keep the NFEM rate in the upper ₦1,400 range — below the street market average.
Analysts credit the Central Bank of Nigeria’s (CBN) recent policy changes and easing inflation for helping the naira stabilise. In September, the CBN lowered its benchmark interest rate, signalling a shift toward looser monetary policy after months of tightening. The move has helped ease volatility in the foreign exchange market, though supply challenges and continued demand from importers and retail buyers are still keeping the gap between official and black-market rates intact.
Why the gap remains
The official NFEM/NAFEX rate is determined through electronic interbank trading and submissions from authorised dealers, with the CBN and FMDQ validating the daily fixings.
In contrast, the parallel market reflects cash-based retail demand and supply, often moving independently when banks restrict access to dollars or when official liquidity is low. That explains why black-market prices on October 22 were roughly ₦15–₦30 higher than the official rate.
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What this means for Nigerians and businesses
For businesses and importers accessing official channels, the exchange rate hovers around ₦1,468 per $1. However, individuals buying or selling physical cash on the streets will continue to see rates closer to ₦1,480–₦1,495 per $1.
Experts say traders and companies handling foreign exchange should keep a close eye on the CBN’s liquidity measures and intraday trading activity on FMDQ/NAFEX for guidance in the coming days.
