The exchange rate between the U.S. dollar and the Nigerian naira in the Lagos parallel market, commonly referred to as the black market, continues to fluctuate as demand for foreign exchange remains high.
As of Saturday, February 8, 2025, traders in the black market are buying the dollar at ₦1,570 and selling at ₦1,590 per dollar. These rates are based on information obtained from Bureau De Change (BDC) operators, who facilitate forex transactions outside the official banking channels.
CBN’s Stance on Black Market Transactions
The Central Bank of Nigeria (CBN) does not officially recognize the parallel market and has consistently warned against engaging in black market forex trading. The regulatory body urges individuals and businesses seeking foreign exchange to use licensed banks and authorized dealers. The CBN has also been implementing policies aimed at stabilizing the naira and closing the gap between the official and parallel market rates.
Official CBN Exchange Rate for Dollar to Naira
While the black market rate provides an alternative for forex transactions, the official CBN exchange rate for the U.S. dollar varies. On February 3, 2025, the official rates recorded were:
- Highest Rate: ₦1,488.99
- Lowest Rate: ₦1,478.22
- Closing Rate: ₦1,500.00
These figures reflect fluctuations in the foreign exchange market and are influenced by factors such as economic policies, forex inflows, and global financial trends.
Why Exchange Rates Vary
Exchange rates in the parallel market can differ significantly from the official rates due to factors such as:
- Demand and Supply: Higher demand for dollars often drives up the price in the black market.
- CBN Policies: Restrictions on forex availability in banks push individuals and businesses to the informal market.
- Economic Uncertainty: Inflation, foreign reserves, and investor confidence impact the naira’s stability.
- Speculation: Traders and forex dealers sometimes manipulate rates based on projected economic conditions.
What This Means for Individuals and Businesses
For Nigerians who rely on foreign exchange whether for business transactions, travel, education, or remittances the disparity between the official and parallel market rates presents a challenge. Importers and businesses that need foreign currency for international transactions often turn to the black market when they cannot access forex through banks.
However, with the CBN’s continued efforts to regulate the forex market, there could be potential policy changes that may impact how individuals and businesses access dollars in the future.
Forex rates remain volatile, and those engaging in currency exchange should stay informed about market trends and CBN policies. It’s advisable to compare rates across different platforms, including banks, BDC operators, and online forex platforms, before making exchange decisions.
Since exchange rates fluctuate throughout the day, individuals looking for real-time updates should check with trusted forex sources, financial institutions, or forex trading platforms.
