The Naira closed the final trading session of the week on Friday, October 31, 2025, holding a relatively stable, yet significantly weaker, position against the US Dollar in the “parallel market” (or “black market”).
The persistence of this premium over the official rate underscores the continued need to fully bridge the gap between the country’s formal and informal foreign exchange windows.
Parallel Market Closing Rates
Based on quotes from dealers and market sources in major urban centers like Lagos, the following rates were reported for the close of trading:
- Sell Rate (Approx.): ₦1,490 per US Dollar ($1) (This is what you pay to buy dollars).
- Buy Rate (Approx.): ₦1,479 per US Dollar ($1) (This is what the dealer pays for your dollars).
The Enduring Spread: Official vs. Parallel
While the official market (NFEM) recorded an appreciation, stabilizing at ₦1,427.50/$1, the parallel rate remained firmly in the upper ₦1,400s. This difference shows that a substantial portion of foreign exchange demand is still directed to the informal market, bypassing official channels.
The calculated premium is significant:
| Market | Closing Rate (₦/$) |
| Parallel Market (Sell) | ₦1,490.00 |
| Official NFEM (Close) | ₦1,427.50 |
| Market Spread | ₦62.50 |
This ₦62.50 difference acts as a crucial “risk premium,” reflecting the higher cost and liquidity constraints faced by those unable to source dollars officially.
Market Commentary
The relatively stable rate in the parallel market—as opposed to the erratic spikes observed in past months—is a modest sign of market calming. However, analysts maintain that the “dual-rate environment” is a major impediment to economic efficiency. A sustained influx of foreign currency into the official window is necessary to flood the market with liquidity, which is the only long-term measure expected to narrow this significant gap and ease pressure on the Naira.
