How the dollar-to-naira rate is set
Official vs app rates, and why they differ
The official rate is the CBN's daily NFEM rate, an average of the trades banks make that day. An app's rate is the price it can offer you right now, with its margin included, so the two are rarely the same.
Last checked 9 November 2026
Photo: Ayorinde Ogundele, CC BY-SA 4.0This guide explains how rates work. It does not predict where the naira will go and is not financial advice.
The official rate
- The CBN publishes the Nigerian Foreign Exchange Market (NFEM) rate for each business day.
- It is a volume-weighted average of that day's trades, and the CBN treats it as the official exchange rate for the day.
- The CBN's table also lists the day's highest, lowest and closing rates, so you can see how far the rate moved.
- Since December 2024, banks have traded dollars and naira on the CBN's Electronic Foreign Exchange Matching System (EFEMS). It runs on Bloomberg's BMatch, and all CBN-licensed dealer banks can use it.
The rate in a money app
An app quotes the price it can give you at that moment. That price follows the market, plus the app's own costs and margin. On Palremit, the rate you see already includes our margin, and you see it before you confirm.
Why the two rates differ
- Timing. The official rate is one figure for the whole day. App rates update through the day; Palremit's rate pages refresh every minute.
- Direction. Buying dollars and selling dollars have different prices. Make sure you compare the same direction.
- Margin. Every provider adds a margin to cover its costs. The size of that margin is the main difference between apps.
- The route. A USDT to naira rate follows the crypto market, so it can differ from the dollar to naira rate even though USDT tracks the dollar.
- Weekends and holidays. The official market is closed, but app rates keep moving.
How to compare rates fairly
- Compare the amount the recipient gets, not just the headline rate.
- Check rates at the same time, for the same amount and in the same direction.
- Use the rate shown at the moment you confirm. Rates you saw earlier may have moved.
Useful pages
Questions, answered.
Why is the app rate different from the CBN rate?
The CBN rate is a daily average of bank trades. An app's rate is a live price that includes its margin, so it moves through the day and is usually different.
Where can I see the official rate?
On the CBN's exchange rates page, which lists the NFEM rate for each day.
Which rate will I get on Palremit?
The rate shown in the app when you confirm. You always see it before you pay.
Why is USDT to naira different from dollar to naira?
USDT trades on crypto markets, so its naira price follows crypto supply and demand. It is usually close to the dollar rate, but not always the same.
Sources
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