Naira slides to around ₦1,350 per dollar on official market as parallel rate hits ₦1,400

The Central Bank of Nigeria (CBN) released data showing that the naira closed at ₦1,350.45 per US dollar on the Nigerian Foreign Exchange Market (NFEM) on November 5. This represented a modest depreciation from the ₦1,348 recorded on November 4 and continued a downward trend that began earlier in the month. In the parallel, or black‑market, the dollar was quoted at approximately ₦1,400 on Friday, November 6, according to Vanguard.

The official NFEM rate, calculated as a volume‑weighted average of inter‑bank transactions, fell to a weighted average of ₦1,348.74 on the same day. Trading activity also slowed, with only 88 inter‑bank deals recorded on November 5, compared with 287 the previous day. The total turnover on the NFEM dropped to about $82.16 million from roughly $434.54 million on November 4.

Background

Nigeria’s foreign‑exchange market operates with two distinct rates: the official NFEM benchmark, which reflects transactions within the formal banking system, and the parallel market, where many importers and individuals obtain foreign currency outside regulated channels. Over the first week of November, the naira has lost ground against the dollar, reversing some of the appreciation seen in October. Nairametrics noted that the naira’s simple average on November 5 was ₦1,348.83, while the weighted average was ₦1,348.74.

The currency’s decline occurs against a backdrop of modest changes in Nigeria’s external reserves. Gross external reserves rose by $295.35 million in October 2026, the smallest monthly increase recorded this year, while net foreign‑exchange reserves reached a record $46 billion, up from $34.80 billion at the end of 2025. Despite the improvement in reserves, the naira continued to weaken, suggesting that the additional foreign‑exchange inflows have not fully offset domestic demand for dollars.

Internationally, the US dollar remained broadly stable against major currencies on the same day, with the dollar index unchanged at 101.55. The Swiss franc gained 0.2% against the dollar, while the euro and Japanese yen showed little movement, according to Reuters.

Why it matters

The divergence between the official and parallel rates underscores persistent demand for foreign currency outside the formal system. Importers, businesses with overseas obligations, students studying abroad, and individuals making international payments closely monitor both rates to manage costs. A higher parallel rate translates into increased expenses for import‑dependent sectors, potentially feeding through to higher consumer prices.

The reduced inter‑bank turnover on November 5 indicates lower liquidity in the official market, which may limit the ability of banks to meet foreign‑exchange demand at the official rate. This situation can push more market participants toward the parallel market, further widening the spread between the two rates.

What happens next

The sources did not specify any forthcoming policy actions by the CBN or the Nigerian government. However, the continued monitoring of both official and parallel rates by market participants suggests that future movements will depend on domestic demand for dollars, the pace of reserve accumulation, and broader global currency trends. Analysts will likely watch upcoming CBN releases and any potential regulatory adjustments that could affect the availability of foreign exchange in the official market.