Dollar to Naira Exchange Rate Today, October 21, 2025 — Official, Black Market, and Parallel Market Rates

The Nigerian Naira traded mixed across different foreign exchange markets on Tuesday, October 21, 2025, as both official and parallel market rates continued to fluctuate amid ongoing demand pressures and limited dollar liquidity.

At the official Central Bank of Nigeria (CBN) window, the dollar to naira exchange rate hovered between ₦1,468 and ₦1,470 per US dollar, according to the latest figures from the Nigerian Foreign Exchange Market (NFEM). Meanwhile, on the parallel or black market, the US dollar was being bought at approximately ₦1,480 and sold for around ₦1,495.

Official Exchange Rate (CBN/NFEM) — ₦1,470 per $1

At the official trading window, data from forex dealers and authorized banks showed that the mid-market rate remained steady around ₦1,470 per US dollar. The slight movement reflects a relatively calm period after weeks of volatility that saw the naira swing between ₦1,460 and ₦1,475 in mid-October.

Analysts note that the Central Bank’s continued interventions and improved supply to the interbank market have helped maintain some stability in the official rate. However, demand pressure from importers, travelers, and investors continues to influence market sentiment.

Parallel Market (Black Market) Rate — ₦1,495 per $1

On the streets of Lagos, Abuja, and major Nigerian cities, currency traders reported a slightly higher rate in the parallel market. As of Tuesday morning, the dollar was purchased at about ₦1,480 and sold at ₦1,495, representing a small gap from the official rate.

The parallel market continues to serve as the main source of foreign currency for many Nigerians who cannot access official channels due to documentation requirements or limited bank allocations. This ongoing reliance on street trading contributes to the persistent two-tier structure of Nigeria’s foreign exchange market.

The Gap Between Official and Black Market Rates Persists

The difference between the official and parallel market rates reflects structural challenges in Nigeria’s foreign exchange system. Market analysts attribute the gap to several factors:

Limited dollar supply from official sources such as the CBN and exporters.
Strong retail demand from importers, business owners, and travelers.
Speculative trading by individuals anticipating further naira depreciation.
Foreign portfolio movements, as investors hedge against potential volatility in Nigeria’s financial markets.

Despite recent policy reforms aimed at unifying exchange rates, liquidity constraints and import-driven demand continue to widen the spread between both markets.

Economic Implications of the Current Exchange Rate

For business owners and importers, the widening gap between the official and parallel market rates means higher operational costs. Importers who source dollars from street traders face increased expenses, which often translate to higher prices for goods and services.

For travelers and students studying abroad, the elevated parallel market rate increases the cost of tuition, travel expenses, and foreign payments.

Meanwhile, remittance inflows and foreign investors are closely watching the market for signs of consistency, as volatility in exchange rates affects investment confidence and cross-border transactions.

Experts’ Outlook on the Naira

Currency analysts remain cautiously optimistic about the naira’s performance in the coming weeks. Some predict that if oil revenue improves and dollar inflows from exports, remittances, and foreign investments rise, the naira could strengthen slightly toward ₦1,450/$1 on the official market.

However, others believe that sustained pressure from demand for imported goods, fuel, and raw materials may keep the parallel rate near ₦1,490–₦1,500 in the short term.

Financial experts emphasize that policy consistency, transparency, and adequate dollar supply are key to closing the gap between the official and black market rates.

Advice for Individuals and Businesses

Given the current volatility, both individuals and businesses are advised to monitor daily exchange rate updates and compare official CBN rates with parallel market trends before making major financial decisions.

Importers should consider planning transactions in advance or exploring forex hedging options to minimize losses due to rate fluctuations. Similarly, Nigerians sending money abroad or receiving international remittances should use trusted financial institutions and avoid unverified sources to prevent fraud.