Nigerian Forex Market Rates Update: CBN NFEM Official Rates for October 31, 2025 – USD/NGN Hits ₦1,421.23
Stay ahead with the latest Nigerian Foreign Exchange Market (NFEM) rates. On October 31, 2025, the Central Bank of Nigeria (CBN) released the official daily forex rates, showing the US Dollar (USD) at a central rate of ₦1,421.2343, with buying and selling rates at ₦1,420.7343 and ₦1,421.7343 respectively. This marks a key reference point for businesses, importers, exporters, and investors navigating Nigeria’s dynamic currency market.
In this comprehensive blog post, we will break down the full CBN NFEM rate sheet for October 31, 2025, explore the factors driving forex volatility in Nigeria, analyze how foreign exchange impacts inflation and economic growth, and highlight recent Naira exchange rate trends — and also analyze the Nigerian forex rates today, USD to NGN official rate, and CBN NFEM updates.
The Official CBN NFEM Rates – October 31, 2025 (CBN Data)
| Currency | Buying Rate(₦) | Central Rate (₦) | Selling Rate (₦) |
|---|---|---|---|
| CFA Franc | 2.5287 | 2.5387 | 2.5487 |
| Chinese Yuan (CNY) | 199.5582 | 199.6284 | 199.6986 |
| Euro (EUR) | 1,639.2432 | 1,639.8201 | 1,640.3970 |
| Japanese Yen (JPY) | 9.2178 | 9.2210 | 9.2243 |
| Saudi Riyal (SAR) | 378.8221 | 378.9554 | 379.0887 |
| South African Rand (ZAR) | 81.7764 | 81.8052 | 81.8340 |
| SDR (IMF) | 1,937.0291 | 1,937.7108 | 1,938.3925 |
| Swiss Franc (CHF) | 1,765.1066 | 1,765.7278 | 1,766.3490 |
| Pound Sterling (GBP) | 1,863.0089 | 1,863.6645 | 1,863.6645 |
| US Dollar (USD) | 1,420.7343 | 1,421.2343 | 1,421.7343 |
| Danish Krone (DKK) | 219.4693 | 219.5465 | 219.6237 |
| WAUA (AfDB) | 1,967.1864 | 1,967.8787 | 1,968.5710 |
Source: Central Bank of Nigeria (CBN) – Nigerian Foreign Exchange Market (NFEM)
Date: October 31, 2025
Key Highlight: The Naira closed stronger against the Euro and Pound compared to recent weeks, while maintaining relative stability against the USD in the official market.
Top 5 Most Traded Currencies in Nigeria (Oct 31, 2025)
- USD/NGN– ₦1,421.23 (Central)
- EUR/NGN – ₦1,639.82
- GBP/NGN – ₦1,863.66
- CNY/NGN - ₦199.63
- CHF/NGN – ₦1,765.73
Pro Tip: CBN NFEM rates for official transactions like Form A, school fees, or PTA/BTA. Parallel market rates remain significantly higher.
What Drives Foreign Exchange Rates in Nigeria?
The Naira exchange rate is influenced by a complex mix of domestic and global factors:
1. Crude Oil Prices and Export Revenue
Nigeria earns over 90% of forex from oil.
A drop in Brent crude below $80/barrel reduces dollar inflows → Naira weakens.
2. CBN Forex Policies and Interventions
The unification of exchange rates in June 2023 merged official and parallel markets.
CBN now uses willing buyer, willing seller model in NFEM.
Periodic forex sales to BDCs help stabilize the parallel market.
3.Import Demand and Trade Balance
High demand for USD to import fuel, machinery, and food → pressure on Naira.
Nigeria’s trade deficit widens when imports outpace exports.
4. Inflation and Interest Rates
CBN’s Monetary Policy Rate (MPR) at 27.25% (as of Q3 2025) aims to curb inflation.
High inflation erodes Naira purchasing power → depreciation cycle
5Speculation and Parallel Market Dynamics
Black market premium often exceeds 15–20%.
Hoarding and round-tripping fuel volatility.
How Forex Rates Affect Nigeria’s Economy and Inflation
1. Inflation Pass-Through
90% of Nigeria’s inflation is imported via forex.
A 10% Naira depreciation can push inflation up by 2–3% within 6 months.
Example: When USD/NGN crossed ₦1,600 in 2024, food prices surged 40% YoY.
2. Business Costs and Profit Margins
Importers pay more → higher prices for goods (rice, cement, vehicles).
Manufacturers face rising input costs → reduced competitiveness.
3. Foreign Investment and Capital Flows
Stable forex = FDI confidence
Volatility → capital flight (e.g., $15B exited in 2022–2023).
4. Government Revenue and Debt Servicing
Nigeria spends over 90% of revenue on debt.
Weaker Naira → higher local-currency cost of USD-denominated debt.
2025 Trend: The Naira has appreciated by ~7.4% YTD ,in the official market, thanks to:
- Higher oil prices (~$82/barrel)
- CBN’s aggressive forex market reforms
- Increased diaspora remittances ($20B+ annually)
However: Parallel market rates remain ₦1,600–₦1,650, showing persistent gaps.
Should You Buy Dollars Now(November 2025 Outlook)
| Factor | Bullish for Naira. | Bearish for Naira |
|---|---|---|
| Oil Price | $82+ | OPEC cuts |
| CBN Reserves | $38B+ | Below $35B |
| Election Cycles | Stability | 2027 buildup |
| Global Recession Risk. | Fed rate cuts | Dollar strength |
Forecast: Mild Naira appreciation to ₦1,380–₦1,400 by Q1 2026 if oil stays above $80.
Final Thoughts: Stay Informed, Act Smart
The October 31, 2025 NFEM rates reflect a more stable Naira in the official market, but challenges remain. For businesses and individuals:
- Use official channels (NFEM) for transparency.
- Hedge forex risk with forward contracts (via banks).
- Monitor CBN announcements daily
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#NigerianForex #NFEMRates #USDNGN #CBNRates #NairaToday #ForexNigeria #October2025Rates #NairaAppreciation #ImportExportNG
Disclaimer: Rates are for informational purposes. Always verify with CBN or your bank.
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