Dollar exchanges for N1,515 at black market

The Naira held firm at the official Nigerian Foreign Exchange Market (NFEM) fixing while continuing to trade weaker on the parallel (black) market on Friday, October 24.

At the NFEM, which operates as the Investors & Exporters window, the US dollar was quoted near ₦1,460/$1. This rate reflected a modest intraday dip from earlier levels this week, indicating some stability in the official channel.

Meanwhile, the parallel market also known as black market, where retail cash dollars change hands—remained notably higher. Dealers in Lagos and other commercial centers quoted the greenback between ₦1,495 and ₦1,515/$1, with reports indicating some transactions were occurring at the higher limit of ₦1,515/$1. This places the street average roughly around ₦1,500/$1.

Importers and corporate bodies operating through official windows will generally see exchange rates close to the NFEM fixing, approximately ₦1,460. However, individuals buying or selling cash on the streets face the higher parallel rates, which increases the cost of remittances, travel, and dollar-priced goods for retail consumers.

The persistent spread between the NFEM fixing and the parallel market continues to reflect differences in liquidity, access to official dollar supply, and general market sentiment. Policy moves by the Central Bank of Nigeria (CBN), including interventions and recent monetary policy shifts, remain key influences on the official rate and market confidence. Analysts suggest continued central bank support for official windows has helped stabilize the NFEM fixing even as high cash demand keeps parallel rates elevated.

Traders and analysts will closely watch weekly FX turnover, any fresh CBN dollar interventions, and global dollar movements for cues. If official dollar supply through FMDQ/NFEM increases, the official fixing could stay stable or strengthen. Conversely, persistent high cash demand will likely keep the parallel market premium in place.