The Nigerian naira exchanged hands at roughly ₦1,451 to the U.S. dollar in the official Nigerian Foreign Exchange Market (NFEM) on Wednesday, November 20, 2025, while the parallel (black) market quoted the dollar around ₦1,475.
The official rate, a daily volume-weighted average published by the Central Bank of Nigeria (CBN), serves as the benchmark for formal transactions, including corporate and government dealings. The parallel market rate, used by individuals and small bureaux de change, remains about ₦24–₦26 higher than the official rate, reflecting the premium traders are willing to pay in the informal market.
Nigeria operates a two-tier FX system: the NFEM window for official, eligible transactions, and an informal market where access is less regulated. The gap between the two rates has tangible economic effects: wider spreads increase import costs, squeeze corporate margins, and can feed into inflation, while narrower spreads can ease such pressures.
Market data over the past week shows modest movement in both venues. NFEM rates have hovered in the mid-₦1,400s, while the parallel market has remained in the high-₦1,400s, signaling continued but contained volatility. Surrounding days saw parallel market quotes ranging from ₦1,450 to ₦1,468, indicating relative stability despite the persistent spread.
This divergence between official and parallel rates underscores ongoing challenges in managing liquidity and foreign exchange access in Nigeria’s two-tier FX system, which continues to be a focal point for policymakers and market participants alike.