The Nigerian naira is facing challenges in the informal foreign exchange market, with the US dollar being quoted at approximately ₦1,490 (sell) and ₦1,479 (buy) in Lagos and other major hubs as of Friday, October 31, 2025.
This indicates a significant disparity between the parallel market rate and the official rate, which stands around ₦1,444 per US$1.
The difference between the official and parallel market rates has widened to about ₦45-₦50 per dollar, signaling ongoing pressure in the informal FX space.
This suggests that liquidity constraints, stricter controls, or a higher risk premium are being demanded by informal dealers.
Importers, travelers, and Nigerians holding USD cash or receiving remittances are facing a significantly worse exchange rate in the parallel market compared to the official window.
The size of the spread serves as a barometer of market stress, indicating how detached the official rate is from actual demand in the economy.
The naira’s performance reflects the persistent dual-rate environment in Nigeria, highlighting structural FX market segmentation.
While the current quote of ₦1,480-₦1,490 suggests modest stabilization, risks remain, and the parallel rate will continue to be sensitive to dollar inflows, oil revenue receipts, official FX interventions, and speculative sentiment.
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