The Naira traded mixed on Monday as the official market rate held steady while the parallel market weakened, reflecting continued tight dollar supply and sustained demand from importers and retail dealers.
According to data published on October 20, 2025, the Central Bank of Nigeria’s, CBN, Daily Nigerian Foreign Exchange Market, NFEM, rate closed at ₦1,467.43 per US Dollar.
Market participants reported that interbank and spot rates hovered between ₦1,468 and ₦1,475 per US Dollar during Monday’s trading session.
In contrast, the parallel or black-market rate remained notably weaker, with street traders in Lagos and Abuja quoting between ₦1,480 and ₦1,500 to the Dollar.
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A bureau de change operator in Abuja, MChinedu Eze, said, “We bought at ₦1,480 and sold at ₦1,500 today. The market is still tight because there are not enough Dollars in circulation.”
The gap between the official and parallel market rates has persisted despite policy efforts to improve liquidity and stabilise the foreign exchange market.
Analysts attributed the disparity to continued Dollar shortages in the system and strong demand from businesses and individuals for import and travel purposes.
An economist, Kemi Alade, observed, “Even though the CBN has introduced reforms to improve market transparency, the demand pressure remains high, and that keeps the street rate above the official one.”
The Central Bank’s recent policy adjustments, including a reduction in its benchmark interest rate in September, have helped ease volatility but have yet to fully close the gap between markets.
For consumers, the sustained weakness of the Naira on the parallel market means imported goods and foreign-priced services may continue to attract higher prices.
Businesses reliant on dollar imports also face challenges in accessing foreign currency through official channels, often resorting to the parallel market at higher costs.
Meanwhile, households receiving remittances from abroad stand to gain more Naira when exchanging through informal routes, though financial experts continue to encourage the use of official channels for transparency and traceability.
