The dollar to naira black market exchange rate continues to be a major concern for businesses, investors, and individuals in Nigeria.
Due to persistent forex shortages and government regulations on foreign exchange, many Nigerians rely on the parallel market to access dollars. As of 21 February 2025, the dollar to naira rate in the black market stands at ₦1,490 per dollar (buying rate) and ₦1,513 per dollar (selling rate).
These rates fluctuate daily based on supply and demand factors outside the official channels controlled by the Central Bank of Nigeria (CBN).
How Much is Dollar to Naira Today in Black Market?
The dollar to naira exchange rate in the black market on 21 February 2025 is as follows:
- Buying Rate: ₦1,490
- Selling Rate: ₦1,513
These rates are obtained from traders in Lagos, Abuja, Kano, and other major cities where forex transactions occur in the parallel market. Due to the ongoing forex restrictions and limited access to official foreign exchange allocations, many individuals and businesses turn to the black market for their dollar needs.
CBN Exchange Rate vs. Black Market Rate
The CBN official exchange rate is typically lower than the black market rate, which has widened the exchange rate disparity in Nigeria. The central bank continues to implement various measures to stabilize the naira, including foreign exchange interventions and policy adjustments.
Meanwhile, platforms like Aboki Forex provide real-time updates on the black market and official exchange rates, helping Nigerians track forex movements efficiently.
Factors Influencing the Dollar to Naira Black Market Exchange Rate
Several key factors contribute to the fluctuations in the black market exchange rate:
1. Forex Scarcity
The scarcity of dollars in official forex markets forces individuals and businesses to seek alternative sources, leading to increased black market activity.
2. High Demand for Dollars
Importers, students studying abroad, travelers, and investors require foreign exchange for transactions. The growing demand for dollars exerts pressure on the naira, causing depreciation.
3. Economic Policies
CBN’s forex regulations, including limits on dollar withdrawals and restrictions on Bureau De Change (BDC) operators, have driven more people to the black market. Policy changes impact liquidity, influencing daily exchange rate movements.
4. Inflation and Interest Rates
High inflation and unfavorable interest rates in Nigeria weaken the naira, making it more expensive to purchase dollars in the parallel market.
5. Speculation and Market Manipulation
Currency speculators and traders influence the exchange rate by hoarding dollars and selling at higher rates when demand surges.
Impact of the Exchange Rate on Nigeria’s Economy
The depreciation of the naira in the black market has significant economic implications:
- Increased Cost of Imports: Nigeria depends heavily on imported goods, and a weaker naira raises the cost of food, electronics, machinery, and raw materials.
- Rising Inflation: A high dollar-to-naira exchange rate contributes to inflation, affecting purchasing power and living standards.
- Foreign Investment Challenges: Investors may be hesitant to bring capital into Nigeria due to currency instability and forex access issues.
- Higher Cost of International Education and Travel: Students and travelers struggle with increased expenses as tuition fees and travel costs become more expensive.
Government Efforts to Stabilize the Naira
The Nigerian government and CBN have introduced several measures to stabilize the forex market, including:
- Increasing forex supply through official channels
- Encouraging non-oil exports to boost dollar inflow
- Cracking down on illicit forex activities and speculation
- Exploring digital currency initiatives like the eNaira
Despite these efforts, black market rates remain volatile due to persistent forex scarcity.
Future Outlook for the Naira
Analysts predict that unless Nigeria strengthens its forex policies, diversifies the economy, and boosts foreign reserves, the naira may continue to face downward pressure. A stable forex environment requires improved economic fundamentals and reduced reliance on the parallel market.
For the latest updates on the dollar to naira exchange rate, visit Investors King, a leading source for forex news and financial market trends.
