As of Thursday, November 13, 2025, the British pound was trading at approximately ₦1,895 in official markets, while in the parallel (street) market, rates were quoted between ₦1,900 and ₦1,930 per £1. This represents a small yet notable gap between the official and informal rates, signaling a relatively stable but slightly divergent currency market. The slight variation in exchange rates reflects the ongoing demand for foreign currency, as well as the dynamic factors influencing liquidity in both the formal and informal markets.
According to the latest data from the Central Bank of Nigeria (CBN) and the Nigerian Foreign Exchange Market (NFEM), the official mid-market reference for the pound was pegged at ₦1,894.78 per £1. Meanwhile, parallel market dealers, as reported by platforms such as Abokifx, showed a typical buying price of ₦1,900 and a selling price of ₦1,930. On the other hand, real-time currency tracking platforms that aggregate live forex feeds indicated rates of roughly ₦1,889–₦1,893 per £1.
Trends in the Exchange Rate: Stability Amid Volatility
The pound/naira exchange rate has remained relatively stable this week, following a period of higher volatility earlier in November. Data from November 12–13 highlighted only modest day-to-day fluctuations in the exchange rate. Analysts attribute this relative calm to several factors, including ongoing foreign currency inflows and the Central Bank’s foreign exchange operations, which are continuing to stabilize liquidity in the market.
One key observation is that the gap between the official and parallel rates has narrowed over recent months. While earlier in the year, the divergence between official and street rates was much wider, the current market conditions reflect a balancing act between formal foreign exchange channels and informal trading activity. Despite this narrowing, the difference between official rates at ₦1,895 and parallel rates at ₦1,900–₦1,930 still suggests a slight premium in the informal market.
Implications for Businesses and Individuals
For businesses with access to official foreign exchange markets, the relatively stable rate of ₦1,895 per £1 at the NFEM provides a predictable basis for planning costs, particularly for firms that rely on importing goods or services. The official exchange rate remains more advantageous for these companies, as they can lock in rates through formal channels, ensuring more stable financial planning.
However, businesses and individuals who rely on the parallel market for foreign exchange, especially those unable to access formal liquidity, may face higher costs. In particular, importers and firms that depend on street-market rates will be subject to the premium seen in parallel markets. The wider gap earlier this year made such disparities more pronounced, but even now, it signals ongoing challenges for those outside the official market.
For individuals—especially those sending or receiving remittances, or traveling abroad—the official rate offers a better deal if they can access it. Remittance recipients, in particular, can benefit from using formal channels at the ₦1,895 rate when available, as this allows them to stretch the value of foreign funds further. On the other hand, those who need foreign currency quickly, such as travelers seeking immediate cash for expenses abroad, will likely turn to the parallel market, where rates can fluctuate based on demand and availability.
Looking Ahead: What Could Shift the Rate?
The continued stabilization of the pound/naira exchange rate depends on several factors, including the flow of foreign currency into Nigeria, the Central Bank’s monetary policies, and the broader economic environment. With the Central Bank’s ongoing foreign exchange operations, liquidity in the formal market has been improving, which could help maintain the current rate band for the time being.
However, any major changes in demand for foreign currency, such as shifts in oil prices, global economic instability, or alterations in domestic economic policies, could trigger volatility in both the official and parallel markets. Similarly, the direction of Nigeria's broader fiscal policy and the government's approach to managing exchange rate adjustments will also influence market expectations.
As the gap between official and parallel market rates continues to narrow, it highlights the ongoing complexity of Nigeria's currency landscape—one in which businesses and individuals must navigate carefully, balancing access to formal channels with the realities of street-level forex trading.