Naira Weakens on Black Market as Official Exchange Rates Hold Steady – October 20

The naira displayed mixed performance on Monday, with the official exchange rate holding steady while the parallel market continued to weaken. This trend reflects the persistent scarcity of dollars and high demand from importers and local dealers.

At the official CBN/NFEM rate, the naira traded at an average of ₦1,467.43 per US dollar. Interbank or spot market rates ranged between ₦1,468 and ₦1,475 per US dollar, showing little change from previous levels. Meanwhile, the parallel or black market recorded buying rates around ₦1,480 and selling rates up to ₦1,500 per US dollar.

Analysts attribute the widening gap between official and street market rates to limited dollar supply and rising demand from manufacturers, importers, and individuals. While the Central Bank’s recent policy rate adjustments in September have eased some volatility, foreign exchange shortages continue to push black-market rates higher.

The situation has notable implications for Nigerians. Imported goods and foreign services may become more expensive, and businesses relying on dollar transactions through unofficial channels could face higher costs. For remittances, families may find better rates on the street market, though official methods remain safer and more transparent.