The naira traded weaker in the parallel market on October 12, 2025, while the official Daily Nigerian Foreign Exchange Market (NFEM) rate remained significantly stronger than street quotes, underscoring continued two-tier market dynamics.
Key rates:
NFEM (official, volume-weighted): ₦1,455.17 per US$1, according to the Central Bank of Nigeria’s NFEM table.
CBN quoted/closing references (published trackers): Various official trackers show CBN reference/closing figures around the mid-₦1,460–₦1,470 range in the first half of October.
Parallel / black market (street/AbokiFX trackers): Market trackers report the dollar trading between ₦1,490 and ₦1,510 — AbokiFX/market aggregators show sell quotes at about ₦1,500–₦1,510, with buy rates generally lower (around ₦1,480–₦1,490).
What happened today
Interbank activity that determines the NFEM figure produced a volume-weighted average (the official NFEM rate) that remained around ₦1,455 to the dollar — far stronger than parallel market offers, which continue to trade several dozen naira weaker. That gap reflects ongoing segmentation between officially settled FX flows and informal street liquidity.
Why the gap persists
Analysts say the two-tier pricing is driven by limited available dollars in some official windows, market participants’ preference for faster cash on the parallel market, and periodic CBN interventions that influence the NFEM but do not always close the street premium. Recent market reports show the naira has been volatile in October but generally trading in the high-₦1,400s to low-₦1,500s in market feeds.
Market reaction and outlook
Traders told market trackers that demand for dollars in the cash market remains firm, keeping parallel quotes elevated. At the same time, easing monetary conditions and increased system liquidity — signalled by recent policy moves — may lessen pressure on the naira over coming weeks, but structural supply constraints mean the parallel premium could persist until dollar flows improve materially.
How this affects Nigerians
Importers and corporates: Those relying on official windows may access dollars nearer the NFEM/CBN reference, but timing, documentation and allocation limits matter.
Individuals and SMEs: Many still buy and sell on the parallel market at the higher quoted levels (roughly ₦1,490–₦1,510), which raises the local cost of foreign travel, school fees and imported goods.
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