The Naira continued to trade with a significant disparity between Nigeria’s official and parallel foreign exchange markets on Sunday, October 19, raising concerns among importers, small businesses, and travellers.
At the Nigerian Foreign Exchange Market (NFEM), the currency traded in the mid-₦1,400s to the dollar, while black-market dealers quoted rates between ₦1,485 and ₦1,500.
The persistent gap reflects ongoing dollar scarcity for certain transactions and a premium placed on immediate access to foreign currency outside authorised channels.
Analysts attribute the divergence to a combination of global and domestic factors, including intermittent central bank interventions.
Market segmentation remains a key driver of the spread. While banks and authorised FX windows source dollars through regulated channels, street dealers respond instantly to cash demand and sentiment.
The NFEM uses a volume-weighted average fixing for institutional transactions, whereas the parallel market adjusts rapidly to real-time pressures.
Importers sourcing dollars from the parallel market face higher landed costs, which may translate into increased prices for consumers. The impact is particularly felt in sectors reliant on foreign inputs.
Remittance recipients and travellers are advised to compare official bank rates with street quotes. Although official windows may offer lower rates, access and timing remain critical.
