The naira traded in a narrow band across official and parallel markets on Wednesday, with the Daily Nigerian Foreign Exchange Market (NFEM / NAFEX) fixing the dollar at about ₦1,468 per $1 while the parallel (black) market quoted the dollar between ₦1,480 (buy) and ₦1,495 (sell).
Markets remained relatively calm after a period of modest gains for the naira earlier in October. Dealers said liquidity on the official windows has improved slightly in recent weeks, keeping NFEM fixes clustered in the high ₦1,400s — well below typical parallel-market quotes.
Analysts point to the Central Bank of Nigeria’s (CBN) recent policy moves and easing inflation as supporting factors for the naira’s stabilisation. In September, the CBN trimmed its benchmark rate — a signal that monetary policy is loosening after an extended tightening cycle — which has helped calm FX volatility. Still, supply constraints and demand from importers and retail customers keep the parallel market premium intact.
Why there’s a gap between official and parallel rates
Official (NFEM/NAFEX) rates are derived from electronic interbank trading and dealer submissions and represent a volume-weighted average reported daily. The CBN and FMDQ processes validate these fixings.
Parallel market rates reflect retail cash demand/supply and can move independently when official liquidity is thin or when banks limit access to FX for private customers. That explains why parallel quotes on October 22 were roughly ₦15–₦30 higher than the NFEM fixing.
What this means for Nigerians and businesses
Importers and corporates depending on official windows will see rates near the NFEM fixing (≈₦1,468), while individuals buying or selling cash USD on the street will transact around the higher parallel prices (₦1,480–₦1,495).
Continued monitoring of CBN liquidity operations and FMDQ/NAFEX intraday flows is recommended for traders and businesses arranging FX today.
