Naira Gains at Official Market as Dollar Trades ₦1,452.8 — Parallel Market Remains Weaker

The naira appreciated at the official foreign exchange market on Wednesday, even as the parallel (black) market continued to trade at weaker levels, maintaining a notable gap between regulated FX transactions and street trading.

At the Daily Nigerian Foreign Exchange Market (NFEM) — the Central Bank–regulated platform that tracks interbank and official transactions — the dollar exchanged at around ₦1,452.8 per US dollar on October 30, 2025. The figure reflects continued improvement in the official rate, extending gains recorded earlier in the month.

In contrast, parallel market traders in Lagos quoted the dollar between ₦1,480 and ₦1,495, buying at ₦1,480 and selling as high as ₦1,495. This places the unofficial market about ₦25–₦40 weaker than the NFEM rate.

The persistent difference between both markets underscores the challenges in Nigeria’s FX landscape — even as liquidity in the official window improves.

Why the Gap Remains

Analysts attribute the official market’s stability to recent Central Bank of Nigeria (CBN) reforms, including improved dollar supply through electronic matching platforms and a measured easing of monetary policy after inflation began to cool.

The CBN, which reduced its policy rate in September, has maintained a cautious stance to balance liquidity and price stability. These policies have strengthened the naira at the NFEM, boosting investor sentiment.

However, structural bottlenecks such as limited FX access for small importers and high retail demand continue to sustain the parallel market and its wider spread. Reports indicate the naira touched record official highs earlier this week before settling near current levels.

Implications for Nigerians

Importers and Consumers:
Goods and services priced in dollars remain vulnerable to parallel market movements when access to official FX is limited. As a result, some imported items continue to reflect higher retail prices.

Investors:
The narrowing gap between official rates and more predictable CBN policies has improved market confidence. Nonetheless, the continued existence of a parallel premium signals that full FX convergence has not yet been achieved.

Opinion Nigeria News