Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency traded at approximately ₦1,450 per dollar at the official window. Meanwhile, traders in the Lagos parallel market purchased the US dollar at about ₦1,460 and sold for up to ₦1,474.
Market Movement
According to market trackers, the Central Bank of Nigeria’s volume-weighted NFEM rate remained relatively stable, although still unable to close the gap with the fast-moving parallel market, where demand from importers, travellers, and remittance users continues to expand.
Why the Spread Remains
Market analysts attribute the persistent gap between the official and parallel markets to limited dollar inflows through formal channels and strong demand outside the system.
Despite recent CBN policy measures, including an interest rate cut in September and targeted interventions to ease volatility, the premium on the black market has remained.
Impact on Nigerians
- Importers: Higher black-market rates increase the cost of importing goods, raising production and retail prices.
- Consumers: Rising import costs may translate to higher prices for essential goods.
- Travellers & Remittance Users: Those exchanging currency outside the NFEM window receive fewer naira per dollar, increasing the cost of foreign transactions.
