Naira weakens as dollar demand outpaces supply

The naira traded around ₦1,459 to the U.S. dollar on official foreign exchange windows on Sunday, October 26, 2025, while cash and parallel-market rates remained significantly higher as demand for hard currency continued to exceed supply.

Key Rates (as of Oct. 26, 2025)

NFEM / Official (volume-weighted) fixing: ₦1,458.8 / $1

CBN indicative range: mid-₦1,450s–₦1,460s

Parallel / Black market: ₦1,495–₦1,515 per $1 (depending on location and dealer)

The Central Bank of Nigeria (CBN) publishes the Daily Nigerian Foreign Exchange Market (NFEM) fixing, a volume-weighted benchmark used by corporates and financial institutions to price transactions. On Sunday, the NFEM rate hovered in the low ₦1,460s, according to market data and FX quote services.

However, street dealers and retail buyers continued to pay a notable premium in the parallel market, where rates ranged mostly between ₦1,480 and ₦1,515. Several local FX trackers reported an average street sell rate near ₦1,495, with some transactions reaching ₦1,515 in Lagos. The widening gap between official and parallel rates highlights persistent FX supply shortages, especially for retail and cash-based transactions.

Traders attributed the naira’s recent movements to a combination of factors, including changes in CBN liquidity operations, shifts in portfolio flows, and seasonal demand linked to imports and remittances. Market data from Reuters and other international providers showed the naira trading around ₦1,458.78 on Oct. 26, with mild intraday volatility.