The naira traded at about N1,377.2 per US dollar on the official Daily Nigerian Foreign Exchange Market on Tuesday, March 25, 2026, while parallel market dealers quoted the greenback higher, reflecting a persistent gap that continues to strain businesses and households.
The official NFEM reference rate, a volume-weighted average published by the Central Bank of Nigeria, was N1,377.2 per dollar, according to market data. At the same time, checks on peer-to-peer and street transactions showed the dollar exchanging at about N1,518 per dollar in the parallel market. For context, that means $100 exchanged for approximately N137,720 at the official rate and higher on the street.
Market colour on Tuesday showed only modest day-to-day movement in the formal window, with CBN’s liquidity management and policy interventions keeping the official rate in the mid-N1,300s. “The Nigerian Naira maintained a relatively stable position against the United States Dollar on Tuesday… This stability comes amid ongoing efforts by the Central Bank of Nigeria to manage liquidity within the Nigerian Foreign Exchange Market,” market reports stated. In the parallel market, bureau de change operators quoted dollars between N1,460 and N1,518 depending on location and cash availability, putting the premium at roughly 6% to 10% above the official fixing.
The gap between the two markets remains a key pressure point for the economy. “The difference between the two rates stems from Nigeria’s foreign exchange policies. The official rate is pegged by the Central Bank and reflects controlled supply to commercial banks and authorised dealers. The black market, by contrast, is influenced by demand pressures, limited forex availability, and informal trading channels, which often push the price higher,” analysts noted. The spread increases costs for importers, dollar-priced services and foreign travel, and can push up prices for imported goods when businesses source dollars on the street rather than through authorised channels.
Recent trends show the naira has stabilised from sharper volatility earlier in 2025. After NFEM prints clustered around the mid-N1,400s in November 2025, the official rate eased to N1,421.73 on November 3, 2025, and firmed further to N1,377.2 by March 25, 2026. The CBN’s published NFEM rates and policy actions remain the anchor for official market pricing. “Market participants say CBN interventions and FX allocation rules have helped stabilise the official window this month,” one market report said.
Still, access issues persist. “The persistent gap between the NFEM fixing and the parallel market rate reflects ongoing liquidity and access issues in the formal FX market,” reports indicated. Cash demand, scarcity of smaller US dollar denominations, and quicker settlement needs keep a premium in the parallel market compared to NFEM.
For other major currencies, the CBN quoted the British Pound at N2,036.96 per £1 and the Euro at N1,622.48 per €1, while parallel market rates were about N2,090 per £1 and N1,680 per €1 as of late September 2025.
The exchange rate matters because it now affects everyday life. Imported goods may become more expensive, tuition and foreign payments can rise, travel and visa costs may increase, gadgets and electronics may cost more, online subscriptions billed in dollars may become harder to maintain, and small businesses may face higher operating costs.
On the state of the economy, the CBN’s policy moves in 2025 — including an easing of the benchmark policy rate in September to support disinflation and growth — have helped ease some pressures but have not yet closed the wedge between official and parallel rates. “Any additional forex sales to authorised BDCs or adjustments to policy windows could narrow or widen the premium,” analysts said. Market observers point to improved forex inflows into the FX window and measured policy adjustments for the easing of turbulence, but say FX inflows from oil sales and foreign portfolio flows remain uneven.
For now, corporates with access to NFEM liquidity continue to enjoy lower dollar costs than users forced to buy from informal dealers. Retail travellers and people sending or receiving small remittances will commonly find rates closer to the parallel-market quotes.
