Nigeria’s naira continued its upward trajectory in the official foreign-exchange market on Wednesday, October 29, 2025, closing at ₦1,452.8 per dollar on the Daily Nigerian Foreign Exchange Market (NFEM) platform. The latest figure reflects steady appreciation since early October, extending a positive trend as confidence returns to the local currency.
Market data showed that the NFEM rate, used for interbank and official transactions, climbed to multi-week highs earlier this week before settling at the current level. Analysts say the movement points to improving supply and greater liquidity in the official market, supported by monetary-policy adjustments and stronger FX inflows.
However, the parallel foreign-exchange market continues to trade at weaker levels, highlighting persistent demand pressures outside official channels. Street dealers in Lagos quoted the dollar between ₦1,480 and ₦1,495, leaving a spread of roughly ₦25 to ₦40 against the official window. Buying rates hovered around ₦1,480, with resale prices reaching ₦1,495.
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The gap underscores ongoing constraints for importers, manufacturers, and small businesses who often struggle to access official foreign exchange. Many operators say delays or limited supply in the formal market force them to turn to street dealers at higher prices, ultimately driving up the cost of imported goods and retail pricing.
Economic observers credit recent Central Bank of Nigeria (CBN) policies for stabilizing the official market. The apex bank eased monetary settings slightly in September as inflation moderated, while enhanced FX-clearing systems and improved transparency in trading platforms helped boost market confidence.
Foreign-exchange traders note that the combination of improved liquidity and clearer pricing mechanisms has made it easier for investors and corporates to plan transactions, adding fresh momentum to the naira’s recovery. Fixed-income markets have also seen renewed interest as yields adjust to reflect easing policy risks.
Despite the progress, economists warn that structural weaknesses remain. Limited export diversification, dependency on oil receipts, and sustained retail FX demand could continue to pressure the currency unless broader reforms take hold.
For now, the naira’s firming in the official market is seen as a welcome development, particularly for companies and investors who rely on regulated FX access. But until supply fully meets demand and access bottlenecks are removed, the parallel market is expected to remain active and the spread between both markets will continue to shape pricing in key sectors.