The Nigerian naira held a largely stable position on Tuesday as improved liquidity in the formal Nigerian Foreign Exchange Market (NFEM) kept the official rate below the parallel market price.
The NFEM closing rate on 18 November 2025 stood at ₦1,448.03 to the US dollar. This showed a drop of about ₦5.60, or roughly 0.39 per cent, from the previous session.
Parallel market operators quoted slightly stronger prices, with common trackers placing the rate between ₦1,455 and ₦1,460 per dollar.
This created a gap of about ₦7 to ₦12 between the official NFEM figure and the street market price. Traders and bureaux de change continued to offer higher cash rates for immediate access to physical dollars.
Understanding the rate differences
The NFEM, sometimes listed as NAFEM or the I&E/NAFEM window, serves as the official daily volume-weighted benchmark based on trades in the interbank and wider FX market. It is the main reference point for corporate and institutional transactions.
In contrast, the parallel market reflects informal retail pricing shaped by real-time demand for physical dollars. These cash-based rates, often monitored through local platforms, regularly trade above the official window.
Recent trends and market drivers
The market has continued to respond to improved FX inflows and softer interest rates after the Central Bank of Nigeria reduced its policy rate in September. This decision has helped steady the naira in the current quarter.
Analysts note that stronger liquidity, foreign investment inflows and easing inflation have also reduced the wide swings seen through 2024 and early 2025.
What it means for consumers and businesses
Importers and firms with foreign payment needs generally favour the NFEM window to secure dollars at the official benchmark.
However, small businesses and individuals who require physical cash often encounter the parallel premium.
Travellers and those receiving remittances also experience different outcomes depending on whether their funds move through banks or informal cash exchanges.