The Nigerian naira traded at ₦1,381.68 against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, July 22, 2026, as the local currency continued to trade stronger in the official market than in the parallel segment.
Official market data showed the naira exchanging at ₦1,381.68 to the dollar at the opening of trading, reflecting the prevailing exchange rate quoted on the NFEM.
However, the parallel market, popularly referred to as the black market, recorded higher exchange rates. Currency dealers quoted the dollar at about ₦1,408 for buying and ₦1,413 for selling, although prices varied across locations, transaction volumes and individual dealers.
At the prevailing exchange rates, $100 would convert to approximately ₦138,168 through the official market. In contrast, the same amount would fetch about ₦141,300 at the parallel market's selling rate, highlighting the premium that continues to exist outside the official window.
The gap between both markets underscores the persistent demand and supply imbalance in Nigeria's foreign exchange market. While the official window has remained relatively stable under the Nigerian Foreign Exchange Market framework, the parallel market continues to reflect stronger demand for foreign currency, particularly among individuals and businesses unable to access dollars through formal channels.
The Central Bank of Nigeria (CBN) has sustained a series of foreign exchange reforms aimed at boosting market liquidity, enhancing transparency and gradually narrowing the spread between the official and parallel market rates. Although the difference has reduced compared with previous years, the street market continues to trade at a premium over the official exchange window.
Market analysts say exchange rates in the parallel market remain highly volatile, with prices capable of changing several times within a single trading day depending on dollar availability, dealer quotations and transaction volumes. Similarly, the official NFEM rate is subject to movement as trading progresses and market participants respond to prevailing demand and supply conditions.
Investors and businesses are expected to continue monitoring developments in the foreign exchange market, as exchange rate movements remain a key indicator for import costs, inflation, investment decisions and overall economic activity in Nigeria.