The Nigerian naira showed further stability on Friday, October 3, 2025, trading firmer in the official Nigerian Foreign Exchange Market (NFEM) and maintaining a steady performance in the parallel market.
Key Rates
Official Market (NFEM): The naira traded at around ₦1,455 per US dollar on a volume-weighted basis, according to official market data.
Parallel Market: Rates hovered between ₦1,460 and ₦1,470 per US dollar, with many street dealers and Bureau De Change (BDC) trackers recording a selling price of about ₦1,460.
Market analysts noted that the strength observed in the official window is largely supported by improved foreign-exchange liquidity and a steady flow of FX inflows over recent weeks. This has contributed to the narrowing spread between the official NFEM rate and the parallel market quotes. Additionally, the Central Bank of Nigeria’s recent monetary easing measures have provided a supportive backdrop for the currency.
While different trading platforms and data providers reported minor variations — with some feeds quoting USD/NGN closer to ₦1,470 — dealers explained that such intraday differences are typical given the diversity of volumes and counterparties across the NFEM and informal markets.
Why It Matters
The reduced gap between the official and parallel rates is significant for key economic players. Importers and exporters benefit from a more predictable cost of servicing foreign obligations through the official window, while households and small businesses find short-term planning easier when black market volatility is subdued.
Outlook
The near-term direction of the naira will depend on sustained foreign inflows, crude oil earnings, and whether the Central Bank and government can maintain supportive liquidity policies. With inflation showing signs of easing and the CBN recently lowering its policy rate, investors and businesses are expected to closely monitor new data on reserves, external inflows, and policy adjustments that could influence market sentiment.
