Nigeria’s naira appreciated slightly at the official foreign exchange window on Sunday, while the parallel market rate held firm around ₦1,500 per dollar, maintaining a notable spread against the Central Bank of Nigeria’s benchmark rate.
According to market data, the Nigerian Foreign Exchange Market (NFEM) — which serves as the Central Bank’s daily official reference rate — opened trading at ₦1,462.50/$1 on October 13. The NFEM rate is the benchmark for pricing and reporting in many corporate and cross-border transactions.
Meanwhile, reports from Lagos, Abuja, and other major cities showed that dealers at the parallel market quoted the naira at approximately ₦1,500 per dollar for cash sales — a rate largely unchanged from recent days but still higher than the NFEM figure. This reflects ongoing liquidity pressures and persistent demand for physical dollars in the informal sector.
Market analysts attribute the continued gap between both markets to limited dollar turnover, cash demand from retail traders, and the lag in policy transmission. The Central Bank’s recent 50 basis-point policy rate cut in September has boosted investor sentiment but has yet to fully narrow the exchange rate differential.
For businesses and individuals, the impact remains mixed: importers accessing dollars via official channels may benefit from slightly cheaper rates, while small traders and travelers still face higher costs in the parallel market. Remittances processed through informal cash transactions also tend to reflect the parallel rate.
Experts predict that the dual-rate situation will persist until Nigeria’s foreign exchange liquidity improves significantly — either through stronger dollar inflows, sustained foreign investment, or proactive Central Bank interventions to stabilize supply and demand.
