The naira maintained a stable performance in the official foreign exchange market on Monday, while rates in the parallel (black) market remained slightly higher, according to official data and market trackers.
Official market (NFEM / CBN rate):
The Central Bank of Nigeria’s Nigerian Foreign Exchange Market (NFEM) bulletin showed the official volume-weighted average rate used by banks and corporates for settlements. The NFEM rate remained in the mid-₦1,480s per dollar range.
Mid-market / online rates:
Currency aggregators reported a mid-market exchange rate of around ₦1,483 per dollar as of October 27, 2025.
Parallel (black market):
Street traders in Lagos quoted the naira between ₦1,485 and ₦1,500 per dollar, reflecting a small premium over the official rate.
What’s happening
The CBN’s NFEM rate continues to serve as the key benchmark for the country’s foreign exchange transactions. Corporates, importers, and banks use this reference rate for trade settlements and reporting.
On the other hand, cash buyers and small businesses operating in the parallel market paid slightly more for dollars, as cash availability remains limited.
Market monitors noted that FX liquidity has improved over the past few weeks, following the CBN’s recent policy moves to stabilise the naira and strengthen foreign reserves.
Why the gap persists
The difference between official and parallel market rates reflects the country’s two-speed FX system. The NFEM and other formal windows (such as NAFEX/FMDQ) handle larger electronic transactions, while the parallel market serves retail and cash-based demand.
Because the parallel market is unregulated and depends on physical cash supply, prices there tend to be higher — a challenge that affects importers, travellers, and individuals who rely on cash transactions.
Outlook
Analysts say the naira’s relative stability in October can be linked to improved liquidity, easing inflation, and the CBN’s consistent interventions. However, they warn that the parallel market premium may persist until cash dollar availability improves and more inflows enter the formal market.
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Dollar to Naira exchange rate today, October 26, 2025
Practical notes
Importers and corporates: Use the NFEM or FMDQ/NAFEX closing rates as benchmarks for transactions.
Individuals and travellers: Expect to pay around ₦1,490–₦1,500 per dollardollardollar in the parallel market.
Exporters and remittance senders: Compare bank and aggregator platforms for the best electronic transfer rates.
Overall, the naira’s exchange rate remains relatively steady — a sign of a calmer market, though cash shortages continue to keep street prices slightly elevated.
