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Today’s Dollar to Naira exchange rate October 20, 2025

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The naira traded mixed on Monday as official market rates held steady while the parallel (street) market remained notably weaker, reflecting tight dollar supply and continuing demand from importers and retail dealers.

Key rates (October 20, 2025)

* Daily NFEM / CBN (volume-weighted average): ₦1,467.43 per US$1

* Interbank/spot feeds (market quotes): roughly ₦1,468–₦1,475 per US$1

* Parallel / black-market (retail dealers): Buy ₦1,480 — Sell ₦1,500 per US$1

What happened today

The Central Bank’s Daily Nigerian Foreign Exchange Market (NFEM) rate – the volume-weighted average used as the official daily reference – remained around the mid-₦1,400s on Monday with market data feeds showing the spot dollar trading near ₦1,467–₦1,475 depending on the source and timing. These official/interbank levels are substantially firmer than rates quoted on the parallel market, where retail dealers were buying dollars at about ₦1,480 and selling around ₦1,500.

Why the gap persists

Analysts and market participants say the gap between the official/NFEM and parallel market rates continues because dollar supply remains tight while demand from importers, manufacturers and individuals is still strong. Recent policy moves — including a reduction in the central bank’s policy rate in September and ongoing FX market management — have helped calm some volatility, but structural shortages of dollars keep the street market premium elevated.

What this means for Nigerians

* Consumers: Imported goods and foreign-priced services remain vulnerable to price increases while the parallel market premium persists.

* Businesses: Firms dependent on timely dollar access may still face higher procurement costs if they buy from unofficial sources.

* Remittances: Households receiving dollars may get more naira if they sell in the parallel market, but official channels are preferable for larger, traceable transfers.

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Sachet Alcohol Ban Suspended, Orders NAFDAC to Stop Enforcement Activities

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The Federal Government has ordered the National Agency for Food and Drug Administration and Control, NAFDAC, to immediately halt all enforcement actions regarding the ban on sachet alcohol and 200ml PET bottle products.

The offices of the Secretary to the Government of the Federation, OSGF, and National Security Adviser, ONSA, in a joint intervention, cited grave concerns over economic stability and potential security threats as reasons for the directive.

The statement warned that continued enforcement, in the absence of a fully implemented National Alcohol Policy, could “destabilize communities, worsen unemployment, and trigger avoidable security challenges”.

According to the statement signed by Terrence Kuanum, Special Adviser on Public Affairs to the SGF, the government clarified that while the National Alcohol Policy has been signed by the Federal Ministry of Health under the direction of President Bola Tinubu, NAFDAC must refrain from sealing factories or warehouses until the policy is fully operationalized.

The statement emphasized that the current “de facto banning” of the products without a harmonized framework is creating significant disruptions.

“The continued sealing of warehouses and de facto banning of sachet alcohol products is already creating economic disruptions and poses a growing security threat, particularly given the impact on employment, supply chains, and informal distribution networks across the country,” the statement warned.

The statement further revealed that the decision was influenced by a correspondence from the House of Representatives Committee on Food and Drugs Administration and Control, dated November 13, 2025.

The letter, signed by Deputy Chairman Uchenna Harris Okonkwo, highlighted existing National Assembly resolutions that cautioned against the proposed ban.

Reaffirming a previous suspension issued in December 2025, the statement stated the need to review legislative, public health and economic factors before a final decision is reached.

“Accordingly, all actions, decisions, or enforcement measures relating to the ongoing ban on sachet alcohol are to be suspended pending the final consultations and implementation of the National Alcohol Policy and the issuance of a final directive,” the statement emphasized.

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Naira Appreciate Against US Dollar in Continuum

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The naira continued appreciation against the United States dollar at the official foreign exchange on Tuesday.

Central Bank of Nigeria data showed that the Naira further firmed up to N 1,351.02 against the dollar on Tuesday, up from N 1,354.26 traded the previous day.

This means that on a day-to-day basis the Naira gained N3.24 against the dollar.

Similarly, at the black market, the Naira appreciated by N5 to N1450 per dollar, up from N1455.

The development comes as the apex in a notice signed by its director of the trade and exchange department, directing banks to sell a maximum of $150,000 per week to licensed Bureau De Change operators.
DAILY POST reports that the country’s external reserves remained high at $47.03 billion as of 6th February 2026.

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