The pounds to naira black market exchange rate continues to fluctuate amid Nigeria’s forex liquidity challenges, inflationary pressures, and global economic trends.
As of Thursday, February 20, 2025, the naira has weakened further in the parallel market due to increased demand for the British pound sterling (£) and supply constraints in the foreign exchange market.
How Much is Pounds to Naira Today in Black Market?
As of today, the pounds to naira black market exchange rate stands at:
- Buying Rate: ₦1,965/£1
- Selling Rate: ₦2,005/£1
These rates are based on real-time market data from street traders across major financial hubs like Lagos, Abuja, and Port Harcourt. Reliable forex sources, including Aboki Forex and Investors King, confirm these figures.
CBN Exchange Rate vs. Black Market Rate
The official exchange rate set by the Central Bank of Nigeria (CBN) is significantly lower than the pounds to naira black market rate. The disparity between the official and parallel market rates has led to increased forex transactions in the black market, as businesses and individuals struggle to obtain forex through formal banking channels.
Factors Influencing the Pounds to Naira Exchange Rate
Several economic and financial factors contribute to the continuous volatility of the GBP to NGN rate in the black market:
- Forex Supply Constraints: The limited availability of foreign exchange through official channels pushes more demand into the parallel market.
- CBN Policies and Forex Regulations: Restrictions on accessing forex for certain transactions lead many businesses and individuals to seek alternatives.
- Inflation and Economic Uncertainty: Nigeria’s rising inflation rate erodes the value of the naira, making foreign currencies more attractive for investment and savings.
- Demand from Importers and Businesses: Many importers who trade with the UK source pounds from the black market due to limited access to official forex allocations.
- Foreign Investment Flows: A decline in foreign direct investment (FDI) and remittances into Nigeria affects forex supply and weakens the naira.
Economic Impact of the Rising Pounds to Naira Rate
The depreciation of the naira against the British pound has significant economic consequences, including:
- Increased Cost of Imports: Businesses relying on imported goods and services from the UK face higher costs.
- Rising Inflation: As import costs rise, the general price level of goods and services in Nigeria increases.
- Weaker Purchasing Power: Households struggle to afford basic necessities as the naira continues to lose value.
- Higher Cost of Education Abroad: Nigerian students studying in the UK pay more in naira terms for tuition and living expenses.
Outlook on the Pounds to Naira Exchange Rate
Market analysts predict continued volatility in the forex market unless the CBN implements more sustainable forex policies to bridge the gap between official and black market rates. Investors and forex traders closely monitor economic trends and government interventions to make informed financial decisions.
For real-time updates on forex rates, visit Aboki Forex and Investors King. Stay updated with the latest forex trends to navigate the evolving exchange rate landscape.
