Naira Faces Fresh Pressure as Parallel Market Rates Weaken Despite Official FX Stability

The Nigerian Naira began the week under renewed pressure in the unofficial foreign exchange market, commonly referred to as the black or parallel market.

On Monday, November 24, 2025, the Dollar-to-Naira rate in the parallel market traded around levels notably weaker than those reported on the Nigerian Foreign Exchange Market (NFEM).

Key Parallel Market Rates:

• Buying (Dealers buy from the public): ₦1,450 – ₦1,460 per $1
• Selling (Dealers sell to the public): ₦1,470 – ₦1,480 per $1

Rates vary slightly based on location—including Lagos, Abuja, and Kano—and transaction volume.

Market Summary & Analysis

The Naira continues to struggle in the parallel market due to persistent foreign currency shortages, despite ongoing reforms aimed at unifying Nigeria’s multiple exchange rate systems.

Official NFEM Context:
The official Investors’ & Exporters’ (I&E) Window rate closed at approximately ₦1,452.68 per $1 on November 23, 2025. Although the gap between official and parallel market rates has narrowed compared to past extremes, the spread still highlights that most retail and informal FX demand is being met outside official channels.

What’s Next for the Naira?

FX traders are monitoring upcoming Central Bank of Nigeria (CBN) policy decisions, particularly regarding liquidity support and potential interest rate actions. Analysts warn that without a meaningful and sustained rise in dollar inflows—whether from oil earnings or foreign investment—the parallel market will continue to serve as a key indicator of the Naira’s actual market value.