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.