The Nigerian naira continued to trade at weaker levels against the United States dollar in the parallel market on Wednesday, February 25, 2026, reflecting persistent demand for foreign exchange outside official channels.
Market sources in Lagos said currency traders at the city’s informal foreign exchange hubs exchanged the dollar at an average selling rate of ₦1,390 and a buying rate of ₦1,370. The figures highlight the sustained gap between the official and unofficial segments of Nigeria’s forex market.
Parallel Market (Black Market) Rates
| Currency Pair | Buying Rate | Selling Rate |
|---|---|---|
| USD/NGN | ₦1,370 | ₦1,390 |
The parallel market—commonly referred to as the black market—remains a major source of foreign currency for individuals and small businesses who are often unable to access dollars through formal banking channels.
Official CBN Rates
Data from the official window showed comparatively stronger levels for the naira, with the dollar trading within a narrower range.
| Currency Pair | Lowest Rate | Highest Rate |
|---|---|---|
| USD/NGN | ₦1,353 | ₦1,361 |
The Central Bank of Nigeria (CBN) does not recognize transactions conducted in the parallel market. The apex bank has repeatedly advised individuals and companies seeking foreign exchange to apply through authorized financial institutions, insisting that all legitimate forex dealings should pass through regulated channels.
Why the Gap Persists
The difference between the official and black-market rates is largely driven by:
- Limited dollar liquidity in the formal market
- Strong demand for forex for imports, school fees, travel, and medical expenses abroad
- Speculative activities and hedging against inflation
- Delays and documentation requirements tied to official allocations
Economic analysts note that whenever supply tightens in the banking system, more participants turn to informal traders, increasing pressure on the naira in that segment.
Rates May Vary
Foreign exchange prices are not fixed and can change multiple times within a day depending on demand, location, and transaction volume. As a result, the rate at which individuals buy or sell dollars may differ slightly from the figures quoted above.
