(DDM) – The Nigerian naira traded mixed on Tuesday, October 21, 2025, as both official and parallel exchange rates showed persistent volatility.
Diaspora Digital Media (DDM) gathered that the Central Bank of Nigeria (CBN) official rate and the daily Nigerian foreign-exchange market (NFEM) hovered around ₦1,470 per US dollar, while Lagos’ parallel market saw the greenback bought at approximately ₦1,480 and sold at ₦1,495.
Recent data from the official window indicated that the mid-market USD/NGN rate stood near ₦1,468–₦1,470, reflecting slight stability compared to the parallel market, which continues to trade at a premium.
Analysts note that the gap between the official and street rates highlights the ongoing two-tier structure of Nigeria’s foreign-exchange market.
Market experts attributed the disparity to limited dollar liquidity for retail and import needs, strong demand from travellers, and importers’ need to hedge against anticipated currency volatility.
They warned that the premium in the parallel market underscores the challenges faced by individuals and businesses relying on informal channels for US dollars.
DDM reports that while the naira has shown modest strength in mid-October, with official quotes ranging from ₦1,460–₦1,475, pressures in the black market remain high, reflecting persistent demand that outstrips supply in informal trading networks.
For businesses engaged in international trade, the mixed rates mean that official figures may not fully reflect the actual cost of procuring foreign currency.
Importers, exporters, and travellers must remain vigilant and monitor both official NFEM data and parallel market quotes to navigate the discrepancies effectively.
Financial analysts warn that if the current trend continues, parallel market premiums may widen further, potentially impacting inflation, import costs, and business planning.
Some also suggest that policymakers need to consider measures to improve dollar liquidity and close the gap between official and street rates to stabilize the market.
DDM gathered that while the CBN continues to manage official rates to maintain macroeconomic stability, persistent demand pressures in informal channels signal a deeper structural issue within Nigeria’s foreign-exchange system.
Investors and individuals are advised to track both markets carefully, as fluctuations may affect purchasing power, import costs, and financial planning, especially ahead of the year-end trade and festive season.