The pounds to naira black market exchange rate remains an essential reference for Nigerians engaged in foreign transactions.
The parallel market rate often differs from the official exchange rate due to varying demand and supply dynamics. As the Nigerian economy continues to experience fluctuations, tracking the latest exchange rate updates is crucial for businesses, investors, and individuals dealing with foreign currencies.
As of 5th February 2025, the black market exchange rate for pounds to naira is as follows:
- Buying Rate: ₦2,005 per £1
- Selling Rate: ₦1,965 per £1
How Much Is Pounds to Naira Today in Black Market?
For those looking to exchange pounds in the black market, today’s rates are:
- Buying: £1 = ₦2,005
- Selling: £1 = ₦1,965
These rates fluctuate frequently due to economic conditions, forex reserves, and local demand.
Factors Influencing the Pounds to Naira Black Market Exchange Rate
Several factors contribute to the fluctuations in the pounds to naira exchange rate in the parallel market:
- Forex Supply and Demand – When the demand for pounds increases while supply remains limited, the naira weakens against the pound.
- CBN Policies – The Central Bank of Nigeria (CBN) regulates forex policies that impact liquidity and official exchange rates. Restrictions on forex access often push more transactions to the black market.
- Economic Stability – Inflation, economic growth, and trade balances affect Nigeria’s currency strength. A weaker naira results in a higher black market exchange rate.
- Global Market Trends – The strength of the British pound in the international forex market also influences the pounds to naira rate. Economic changes in the UK, interest rates, and trade policies play a role.
- Remittances and Capital Inflows – An increase in remittances from Nigerians abroad can help stabilize the naira. However, high capital outflows can weaken it.
CBN Official Rate vs. Black Market Rate
While the Central Bank of Nigeria (CBN) provides an official exchange rate, the black market rate is often significantly different. The CBN official rate is available for government-approved transactions, while the black market operates based on real-time supply and demand.
For those looking for the latest official exchange rate, visit CBN’s website.
Should You Buy Pounds in the Black Market?
Although the black market is widely used for foreign exchange transactions in Nigeria, there are risks associated with it, including:
- Legal Issues – Trading forex outside the official channels is considered illegal by Nigerian financial regulations.
- Unstable Rates – The black market is highly volatile, making it difficult to predict future movements.
- Risk of Counterfeit Currency – Unregulated forex transactions pose a risk of receiving fake or invalid currency.
Future Outlook for the Naira Against the Pound
Experts predict that the pounds to naira exchange rate will continue to experience fluctuations due to economic uncertainties, inflation, and global forex trends. However, increased foreign investments, rising forex reserves, and strategic CBN interventions could help stabilize the naira in the coming months.
Conclusion
The pounds to naira black market exchange rate for today, 5th February 2025, is ₦2,005 per pound for those buying and ₦1,965 per pound for those selling. Given the volatility of the forex market, staying updated on the latest exchange rates is crucial for making informed financial decisions.
For daily updates on the pounds to naira exchange rate, visit Investors King.
