By Peter.
The Nigerian Naira traded around ₦1,450 per USD in the official Nigerian Foreign Exchange Market (NFEM) on Friday, November 21, 2025, while parallel market dealers in Lagos quoted dollars at approximately ₦1,460 (buying) and ₦1,474 (selling)—a modest widening of the gap from earlier in the week.
Quick Facts
- Official NFEM Rate (Volume-Weighted): ~₦1,450 per $1
- Parallel Market Spread: Buying at ~₦1,460; Selling up to ~₦1,474
Market Snapshot
The CBN’s daily volume-weighted NFEM rate held firm in the mid-₦1,400s, buoyed by ongoing central bank interventions and improved formal inflows. However, Lagos’ black market saw sellers maintain a premium, driven by retail demand, import pressures, and informal remittances. This reflects a narrowing but still notable divergence, down from wider spreads earlier this year.
Why the Gap Persists
Analysts attribute the premium to limited FX liquidity in official channels versus robust dollar needs for imports and personal use. The CBN’s September 2025 policy rate cut and spot interventions have curbed volatility, but structural issues—like uneven remittance routing—keep the parallel rate elevated.
Implications for Nigerians
- Importers: Elevated parallel rates inflate dollar costs for non-NFEM access, hiking goods’ landed prices.
- Consumers: Expect trickle-down effects as businesses absorb higher import expenses, fueling inflation.
- Remitters & Travelers: Informal conversions yield less Naira per dollar, effectively raising FX costs for outbound flows.
The CBN continues monitoring, with eyes on holiday-season demand. Stay tuned for Monday’s rates.
#NairaUpdate #FXMarketNG #CBNInterventions #ParallelMarket #EconomicImpacts
