By Peter.
The Nigerian Naira maintained relative steadiness on Saturday, November 22, 2025, with the official Nigerian Foreign Exchange Market (NFEM) rate lingering around ₦1,450 per US dollar, according to Central Bank of Nigeria (CBN) volume-weighted averages. This reflects continuity from Friday’s close, buoyed by ongoing CBN interventions and improved formal inflows, though liquidity remains constrained.
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
Saturday’s trading echoed Friday’s patterns, with the NFEM benchmark holding in the mid-₦1,400s amid subdued weekend volumes. Parallel dealers in Lagos and Abuja sustained a modest premium, driven by retail demand, import pressures, and informal remittances bypassing official channels. No major CBN announcements emerged over the weekend, but analysts note the gap—hovering at ~₦10–24—has narrowed from earlier peaks, thanks to September’s policy rate cut and spot FX sales.
Why the Gap Persists
The divergence stems from structural hurdles: Limited dollar liquidity in formal markets versus robust unofficial needs for goods, tuition, and travel. While CBN reforms unify rates, demand outpaces supply, keeping parallel traders ~1–2% higher. Projections from Standard Bank suggest the Naira could close 2025 at ~₦1,458.8/$1, with gradual easing into 2026 on reserves buildup.
Implications for Nigerians
- Importers: Parallel sourcing inflates dollar costs, hiking landed prices for essentials and fueling supply-chain strains.
- Consumers: Expect pass-through effects, with imported inflation eroding purchasing power amid food and fuel volatility.
- Remitters & Travelers: Informal exchanges yield less Naira per dollar, amplifying expenses for overseas education, holidays, or diaspora sends—up ~2% effective cost versus NFEM.
As holiday demand looms, watch for CBN tweaks. The dual-tier system endures, but convergence glimmers if inflows accelerate.
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