NEWS

Dollar to Naira Exchange Rate Today, October 26, 2025

The Nigerian naira continued to weaken against the United States dollar on Sunday, October 26, 2025, as pressure on foreign exchange supply persisted across official and parallel markets.

Official Exchange Rate

At the official window, the naira traded around ₦1,458.8 per dollar, based on the Nigerian Foreign Exchange Market (NFEM) data released by the Central Bank of Nigeria (CBN). This figure represents the volume-weighted average rate used by banks, corporates, and other authorized dealers to settle FX transactions.

Market reports also indicated that the CBN’s indicative rate hovered between ₦1,450 and ₦1,460 during the weekend trading session, showing continued volatility despite recent monetary policy adjustments.

Black Market (Parallel) Exchange Rate

In the parallel market, the naira traded at much weaker levels. Street dealers in Lagos, Abuja, and Port Harcourt sold the dollar between ₦1,495 and ₦1,515, depending on location and demand. On average, most black-market operators quoted ₦1,500 per dollar, marking a wide gap between the official and parallel exchange rates.

The spread between the official rate (around ₦1,458) and the street rate (around ₦1,500+) highlights the ongoing shortage of dollar liquidity for cash transactions and informal trade.

Factors Affecting the Naira’s Performance

Currency traders and analysts attribute the current exchange rate trend to a mix of local and global factors. Among these are:

Reduced foreign inflows: Slower portfolio investments and lower diaspora remittances have limited the amount of hard currency entering the Nigerian market.
Seasonal import demand: Businesses and manufacturers are seeking more dollars to pay for raw materials and goods ahead of the year-end season.
CBN monetary policy adjustments: The Central Bank’s interventions and liquidity control measures are influencing market sentiment, with traders watching how the regulator balances inflation and currency stability.

As of Sunday evening, data from international FX trackers and Reuters indicated that the naira traded around ₦1,458.78 per dollar on electronic platforms, with slight intraday fluctuations.

Impact on Nigerians and Businesses

For importers and large corporations, transactions carried out through official channels such as the NFEM or FMDQ are priced close to the official benchmark rate. However, small business owners, travelers, and individuals relying on cash purchases are compelled to buy at higher parallel rates.

This widening gap continues to affect the cost of imported goods, fuel prices, and inflation across the country. Businesses dependent on dollar-denominated supplies face higher operating expenses, which often translate into increased prices for consumers.

Outlook for the Naira

Market analysts believe that narrowing the exchange rate gap will depend on stronger foreign currency inflows, sustained investor confidence, and improved access to dollars in the formal banking system.

The CBN is expected to continue its intervention measures, including periodic dollar sales to commercial banks and reviewing monetary policies aimed at stabilizing the naira.

Investors will also be paying close attention to global oil prices, remittance trends, and the government’s fiscal management strategies, as these factors collectively influence Nigeria’s foreign exchange reserves and overall market confidence.

Summary of Exchange Rates (October 26, 2025):