The naira showed a mixed performance on Monday as the official exchange rate remained stable, while the parallel market continued to weaken.
This trend highlights the ongoing scarcity of dollars and strong demand from importers and local dealers.
Key Exchange Rates (October 20, 2025)
Official CBN/NFEM Rate (Average): ₦1,467.43 per US$1
Interbank/Spot Market: ₦1,468 – ₦1,475 per US$1
Parallel Market (Black market): Buy ₦1,480 — Sell ₦1,500 per US$1
Market Movement
The Central Bank of Nigeria’s official Nigerian Foreign Exchange Market (NFEM) rate, which represents the daily volume-weighted average, stayed around ₦1,467.
Market data also showed spot trading near ₦1,475 across different sources. However, the naira remained weaker in the parallel market, where street traders bought at about ₦1,480 and sold for as high as ₦1,500.
Why the Gap Remains
Experts say the widening gap between the official and street market rates is due to tight dollar supply and rising demand from importers, manufacturers, and individuals.
Although recent monetary measures—such as the Central Bank’s policy rate cut in September—have helped ease volatility, the shortage of foreign exchange continues to drive up black-market rates.
Implications for Nigerians
For consumers, the prices of imported goods and foreign services may rise further while the rate difference remains wide.
For businesses, the companies relying on dollar transactions could face higher costs when using unofficial channels.
As for remittances, families receiving foreign transfers may get better rates on the street market, though official methods remain safer and more transparent.