The naira maintained relative stability on Tuesday as improved liquidity in the Nigerian Foreign Exchange Market (NFEM) kept the official rate stronger than prices quoted in the parallel market.
Data from the NFEM showed that the volume-weighted closing rate settled at ₦1,448.03 per US dollar on November 18, 2025—approximately ₦5.60 or 0.39% stronger than the previous day.
Meanwhile, black-market trackers quoted the dollar between ₦1,455 and ₦1,460, keeping the spread at roughly ₦7–₦12 above the official market price. Bureau de change operators say cash demand continues to push retail USD prices above the formal window.
Understanding the Rate Movements
The NFEM—also listed as NAFEM or the I&E window—remains the primary benchmark for institutional, interbank and corporate FX flows. By contrast, the parallel market reflects on-the-spot cash demand and supply conditions.
Analysts attribute the recent stability to better FX inflows, reduced volatility, and improved liquidity following the Central Bank of Nigeria’s interest-rate cut earlier in September. Softer inflation pressures and targeted CBN interventions have also helped ease the sharp swings that dominated trading over the past year.
Impact on Businesses and Consumers
Corporate importers and firms with foreign-currency exposure continue to favour the NFEM window, where rates are more predictable and typically lower.
However, SMEs, travellers, and individuals needing immediate physical dollars still face higher cash prices in the parallel market.
Remittance beneficiaries are also seeing varied outcomes depending on whether funds are received through formal banks or informal currency exchanges.
