NEWS

Dollar to Naira Exchange Rate Today, October 16, 2025 – CBN and Black Market Rates

The Nigerian currency continues to face pressure as the Naira exchanged between ₦1,485 and ₦1,505 per dollar on the black market, while official rates hovered in the mid-₦1,400s range on Thursday, October 16, 2025.
This ongoing gap between the official and parallel markets shows that foreign exchange liquidity in Nigeria remains tight despite various policy measures.

Official and Black Market Exchange Rates

According to market reports, the Central Bank of Nigeria (CBN) recorded a weighted average rate of around ₦1,460–₦1,475 per dollar on the official Nigerian Foreign Exchange Market (NFEM) window.
Meanwhile, retail traders and Aboki FX dealers in Lagos and other commercial hubs quoted the dollar at ₦1,485 for buying and ₦1,505 for selling.

This difference of about ₦20–₦45 between the two markets highlights the ongoing foreign exchange disparity that continues to affect importers, investors, and consumers across Nigeria.

Why the Naira Continues to Fall Against the Dollar

Despite efforts by the CBN to stabilize the currency, several factors are still driving the wide gap between the official and parallel market rates:

1. Persistent Dollar Demand

Importers and business owners continue to demand more foreign currency to pay for goods and raw materials. Due to limited access to official FX channels, many resort to the parallel market where rates are higher but transactions are faster.

2. Slow Access to Official Forex

Businesses and individuals often experience delays or restrictions when applying for dollars through official banking systems. This pushes many to look for alternative sources in the parallel market, increasing pressure on the Naira.

3. Market Liquidity and Investor Sentiment

Even though Nigeria’s inflation rate has slightly eased in recent months, market liquidity and investor confidence remain fragile. Uncertain fiscal policies and fluctuating oil prices continue to affect foreign capital inflows, which directly influence FX supply.

4. Impact of Policy Adjustments

Recent monetary policy tightening and interventions by the CBN have helped to reduce speculative trading, but the broader market still struggles with dollar scarcity, creating a persistent gap between rates.

How the Current Dollar to Naira Rate Affects Nigerians

The impact of this exchange rate difference is being felt across several sectors of the economy:

1. Higher Costs for Importers

Businesses that rely on imported goods are forced to buy dollars at black market rates, increasing their operational costs. This often leads to higher prices for consumers, contributing to inflationary pressure.

2. Reduced Purchasing Power

With the Naira losing value, the average Nigerian’s purchasing power continues to decline. Imported products, fuel, electronics, and even medical supplies become more expensive.

3. Challenges for Remittance Recipients

Those receiving foreign remittances also face varying conversion outcomes depending on the channel used. Bank transfers often reflect official rates, while cash exchanges at retail or bureau de change points follow the higher parallel market rates.

4. Investors Adopting Caution

Foreign investors remain cautious due to currency instability. Many are waiting for consistent policy direction before re-entering the Nigerian market, especially in the forex trading and financial investment sectors.

Outlook for the Naira in the Coming Weeks

Analysts believe that the Naira’s performance in the short term will depend largely on CBN’s ability to increase dollar liquidity and restore confidence in the official market.
Efforts to unify the exchange rate have shown limited success so far, as the black market continues to attract traders seeking faster and easier dollar access.

However, if oil prices strengthen and the government maintains discipline in its fiscal and monetary policies, the Naira could gradually stabilize.