Exchange rates today, October 27, as Naira trade higher at black market
The value of the naira held firm in official trading on Monday, though black-market rates stayed slightly above benchmark levels.
Reports from the Central Bank of Nigeria (CBN) and market observers confirmed that both institutional and retail segments showed minimal movement.
Official Market Snapshot
Figures released in the CBN’s NFEM bulletin showed that the official exchange rate — used by banks and corporate institutions — remained stable.
The NFEM, which reflects a daily volume-weighted average price (VWAP), continues to guide all major transactions in the formal market.
Currency tracking websites listed the mid-market rate at about ₦1,483 per US dollar on October 27, 2025, maintaining its recent consistency.
Parallel Market Update
At the street level, traders in Lagos quoted between ₦1,485 and ₦1,500 per dollar. This shows a slight gap from the official rate, driven mainly by increased retail demand for physical cash.
Market watchers said that while access to official FX has improved, many small businesses and individuals still depend on the informal market, keeping its rates slightly higher.
Market Conditions and Outlook
The naira traded within the ₦1,480–₦1,490 range for much of the day, in line with trends observed over the past week. Analysts linked the calm trading pattern to stronger FX liquidity and ongoing CBN reforms aimed at stabilising the currency market.
Despite the improved outlook, the difference between official and street prices persists. This is largely due to uneven dollar supply and the unregulated nature of the black market.
Implications for Traders and Consumers
Nigeria’s FX system operates on different levels — the CBN’s NFEM and NAFEX markets handle institutional flows, while the parallel market serves everyday cash needs. The spread between these markets affects import costs, consumer prices, and remittance values.
Experts believe the CBN’s tighter monetary policies, improved reserves, and slower inflation have contributed to the naira’s relative stability in recent weeks.
