The exchange rate between the British Pound (GBP) and the Nigerian Naira (NGN) plays a crucial role in Nigeria’s foreign exchange market, impacting businesses, travelers, and forex traders.
The black market exchange rate is influenced by several economic factors, including demand for foreign currency, government policies, and market speculation.
How Much is Pounds to Naira Today in Black Market?
In the parallel (black) market, the exchange rate for Pounds to Naira as of 7th February 2025 is as follows:
- Buying Rate: ₦2,005 per £1
- Selling Rate: ₦1,965 per £1
This rate is significantly different from the official exchange rate set by the Central Bank of Nigeria (CBN). To check the latest official rates, visit the Central Bank of Nigeria (CBN) website.
Factors Influencing the Pounds to Naira Black Market Exchange Rate
Several factors contribute to the fluctuation of the pound-to-naira exchange rate in the black market, including:
- Forex Demand & Supply: A shortage of pounds in the official forex market leads individuals and businesses to source funds from the black market, driving up demand.
- CBN Forex Policies: Restrictions on forex access from official sources can increase reliance on the parallel market, affecting the exchange rate.
- Inflation & Economic Stability: High inflation rates and economic uncertainties weaken the naira, leading to a stronger pound.
- Interest Rates & UK Economic Conditions: Economic trends in the United Kingdom, such as interest rate hikes by the Bank of England, can impact demand for the GBP in Nigeria.
- Diaspora Remittances: Increased remittances from Nigerians in the UK can improve pound liquidity in Nigeria, potentially strengthening the naira.
Impact of the Exchange Rate on Nigeria’s Economy
The black market exchange rate for the pound significantly affects the Nigerian economy, including:
- Cost of Goods and Services: A weaker naira increases the price of imported goods, fueling inflation and reducing purchasing power.
- Education & Travel Expenses: Nigerians paying for school fees, medical bills, or travel expenses in the UK face higher costs due to unfavorable exchange rates.
- Foreign Investments: Currency instability may discourage foreign direct investment (FDI) and make international business transactions more expensive.
Where to Get the Latest Pounds to Naira Updates?
For real-time updates on the exchange rate, forex market trends, and business news, visit Investors King—a leading financial news platform providing insights into Nigeria’s economy and global markets.
As Nigeria continues to experience fluctuations in forex rates, individuals and businesses are advised to stay informed and make strategic financial decisions based on reliable market data.
