The naira appreciated further on Saturday, November 1, 2025, ending the day at ₦1,421.73 per US dollar on the Nigerian Foreign Exchange Market, the country’s official electronic trading window.
In contrast, black-market traders in Lagos quoted the dollar between ₦1,450 and ₦1,469.
Fresh data from Nigeria’s key FX platforms showed that the currency’s upward trend continued in the official market, with NFEM/EFEMS participants posting a closing rate of ₦1,421.73, a clear improvement from late October figures.
The rally, now several sessions old, has been linked by analysts to robust foreign exchange inflows and targeted interventions by the Central Bank of Nigeria to steady the market.
The parallel market, however, remained more volatile. Various trackers indicated that street traders were selling dollars around ₦1,460–₦1,469, while buyers offered between ₦1,445 and ₦1,450.
Although the difference between the official and parallel rates has narrowed, it still highlights the divide between formal and informal FX channels.
Drivers Behind the Naira’s Strength
Market watchers attribute the recent appreciation to several factors:
Improved FX supply, Higher inflows from remittances, portfolio investments, and oil earnings have enhanced liquidity in the official window.
Policy and CBN actions, Ongoing central bank reforms and strategic dollar interventions have contributed to market stability and reduced volatility.
Investor sentiment, A combination of easing global risks and mild domestic disinflation has renewed interest in naira-denominated assets.
Implications for Nigerians
For importers and business owners, a stronger official rate means lower naira costs for imports through the NFEM, though limited access and the persistence of a parallel premium remain challenges.
For consumers and remittance recipients, the trend is mixed. Those converting remittances via official channels now receive more naira than before, while individuals relying on the black market continue to face higher rates.
Outlook
Near-term currency movements will depend on sustained inflows, CBN’s market activity, and global investor sentiment.
Analysts believe that if the flow of foreign exchange remains strong and the central bank maintains its supportive stance, the naira could either hold its ground or strengthen slightly on the NFEM. Still, parallel market gaps are expected to linger until liquidity equalizes across both markets.
