The naira traded around ₦1,450 to the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday, November 21, 2025, while dealers in Lagos’ parallel market quoted the dollar between ₦1,460 (buy) and ₦1,474 (sell).
Quick Facts
Official NFEM rate: Approximately ₦1,450 per $1
Parallel market: Dealers buying at ₦1,460 and selling up to ₦1,474
What Happened Today
The NFEM — the Central Bank of Nigeria’s volume-weighted average rate based on formal transactions — stayed in the mid-₦1,400 range, according to market trackers.
Lagos parallel market dealers continued to offer higher prices, driven by strong demand from retail FX buyers, importers and Nigerians relying on informal channels for remittances.
Why the Gap Persists
Analysts attribute the persistent spread between the official rate and the parallel market to limited FX inflows into the formal window and sustained demand for dollars across import and personal transfer needs.
Recent CBN policies — including the rate cut announced in September 2025 and occasional market interventions — have helped reduce volatility but have not fully bridged the gap.
What It Means for Nigerians
Importers:
A higher parallel market rate increases the final cost of imported goods, especially when NFEM allocations are unavailable.
Consumers:
Rising import costs often push businesses to adjust their prices, adding pressure on household spending.
Remittances and Travel:
Individuals exchanging dollars informally receive slightly less naira per dollar than through official channels, raising the effective cost of FX.
