As of Thursday, February 6, 2025, the U.S. dollar is being exchanged for the Nigerian naira at varying rates across different forex markets.
In the Lagos Parallel Market (Black Market), currency traders are currently buying one U.S. dollar at ₦1,550 and selling at ₦1,570.
These figures are based on information gathered from Bureau De Change (BDC) operators in Lagos.
CBN’s Position on the Parallel Market
The Central Bank of Nigeria (CBN) does not recognize or regulate black market forex transactions. Instead, it has repeatedly advised individuals and businesses requiring foreign exchange to conduct transactions through official banking channels. The CBN aims to stabilize the naira by controlling forex availability within the formal financial sector.
Dollar to Naira Exchange Rates Breakdown
Black Market (Parallel Market) Rates
- Buying Rate: ₦1,550 per $1
- Selling Rate: ₦1,570 per $1
CBN Official Exchange Rates
- Highest Rate: ₦1,501 per $1
- Lowest Rate: ₦1,495 per $1
Why Do Exchange Rates Vary?
Foreign exchange rates are influenced by several factors, including:
- Supply and Demand: High demand for dollars in Nigeria often drives up exchange rates in the parallel market.
- Inflation and Economic Stability: A weakening economy can lead to currency depreciation, pushing up the dollar’s value against the naira.
- CBN Policies and Regulations: Government interventions, such as forex restrictions and capital controls, can impact both official and parallel market rates.
- Global Market Trends: International economic conditions, including oil prices and foreign investments, play a role in determining the naira’s strength.
Should You Use the Black Market for Forex Transactions?
While the black market offers more flexible rates, transactions in this sector come with risks, including:
- Lack of Regulation: Since the CBN does not oversee parallel market trades, buyers and sellers lack protection against fraud.
- Price Volatility: Rates can change drastically within hours, making it unpredictable.
- Legal Risks: Engaging in unauthorized forex transactions can lead to complications if authorities enforce strict regulations.
Conclusion
The dollar-to-naira exchange rate continues to fluctuate, with significant gaps between official and black-market rates. Anyone engaging in forex transactions should stay updated on current rates and consider using formal banking channels to avoid risks. Since exchange rates may vary based on location and market conditions, it is always advisable to verify rates from reliable sources before making transactions.
