Naira Falls to ₦1,510/$1 on Black Market as Official Rate Holds Steady at ₦1,455 — October 12, 2025

The naira weakened further on the parallel market on October 12, 2025, even as the official exchange rate under the Nigerian Foreign Exchange Market (NFEM) remained relatively stable, highlighting the persistent gap between official and street market rates.

According to the Central Bank of Nigeria’s (CBN) NFEM table, the official volume-weighted average rate stood at ₦1,455.17 per US dollar. Various CBN reference trackers also placed the closing rate between ₦1,460 and ₦1,470 during the first half of October.

In contrast, parallel market sources and aggregators such as AbokiFX quoted the dollar at ₦1,490–₦1,510, with street buy rates ranging between ₦1,480 and ₦1,490.

Market Overview

Interbank transactions that determined Friday’s NFEM rate produced a stronger official rate than the street market offers, underscoring Nigeria’s two-tier FX system. Despite policy efforts, the gap between official and parallel rates remains wide due to persistent liquidity shortages in the formal market.

Why the Gap Remains

Analysts attribute the disparity to limited official dollar supply, delayed access to FX windows, and investor preference for cash availability on the black market. They also note that periodic CBN interventions help stabilize the NFEM rate but rarely bridge the street market premium.

So far in October, the naira has shown volatility, oscillating between the high ₦1,400s and low ₦1,500s across different market segments.

Market Sentiment and Outlook

FX traders report sustained demand pressure in the cash market, keeping parallel rates elevated. However, some analysts believe easing monetary policies and improved system liquidity could help moderate depreciation if foreign inflows increase.

Impact on Nigerians

• Importers and large corporates accessing official channels can obtain FX near the ₦1,455–₦1,470 range, though allocation timelines and documentation remain hurdles.
• Individuals and SMEs, who rely heavily on the street market, continue to pay around ₦1,500 per dollar, raising the cost of foreign tuition, travel, and imported goods.

Despite government efforts to unify rates, the parallel market premium persists as Nigeria’s FX supply-demand imbalance endures.

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