As of Sunday, February 9, 2025, the black market exchange rate for the U.S. dollar to the Nigerian naira in Lagos is as follows:
- Buying Rate: ₦1,570 per USD
- Selling Rate: ₦1,590 per USD
These rates are based on information from Bureau De Change (BDC) operators. However, it is important to note that exchange rates may vary depending on location, demand, and the dealer involved.
CBN’s Official Stance on Forex Transactions
The Central Bank of Nigeria (CBN) does not officially recognize the parallel (black) market and has repeatedly advised individuals and businesses to conduct foreign exchange transactions through authorized financial institutions such as banks. The regulatory body maintains that relying on official channels helps promote stability and transparency in the foreign exchange (forex) market.
CBN’s Official Dollar to Naira Exchange Rate
For comparison, the CBN’s official exchange rate on February 9, 2025, is as follows:
- Highest Rate: ₦1,503 per USD
- Lowest Rate: ₦1,496 per USD
These official rates typically apply to government transactions, banks, and large-scale importers, differing significantly from the rates in the black market, where forex availability is influenced by supply and demand pressures.
Fluctuations in the Parallel Market
The black market exchange rate is known to fluctuate frequently due to various factors, including:
- Economic Policies: Changes in monetary policies by the CBN can influence forex availability.
- Inflation and Market Demand: High inflation and increased demand for dollars from importers, travelers, and investors can cause rates to rise.
- Foreign Investment and Diaspora Remittances: A rise or fall in forex inflows from international investors and remittances from Nigerians abroad affects exchange rates.
Why Black Market Rates Differ from Official Rates
The gap between the official and parallel market rates is often driven by restrictions imposed by the CBN on accessing foreign exchange for non-essential imports. Many individuals and businesses turn to the black market for quicker access to forex, despite the risks involved.
Caution for Forex Traders and Users
Since exchange rates fluctuate daily, those engaging in forex transactions—whether for travel, business, or investment—are advised to:
- Verify rates from multiple sources before proceeding with a transaction.
- Exercise caution in dealing with unauthorized forex dealers to avoid fraud or unfair pricing.
- Consider using official banking channels whenever possible to ensure transaction security and regulatory compliance.
With the naira experiencing continued volatility, keeping track of forex trends is essential for making informed financial decisions.
