The pounds to naira black market exchange rate remains a key concern for businesses, travelers, and forex traders in Nigeria.
Due to the limited availability of foreign exchange in official channels, many Nigerians rely on the black market for their forex needs. As of 21 February 2025, the black market exchange rate for the British pound stands at ₦1,965 per pound (buying rate) and ₦2,005 per pound (selling rate).
These rates fluctuate frequently due to supply and demand dynamics in the informal forex market, which operates outside the control of the Central Bank of Nigeria (CBN).
How Much is Pounds to Naira Today in Black Market?
The latest black market exchange rate for pounds to naira on 21 February 2025 is as follows:
- Buying Rate: ₦1,965
- Selling Rate: ₦2,005
These rates may vary slightly depending on location and transaction volume. Forex dealers in cities like Lagos, Abuja, and Kano often adjust their rates based on market conditions. Due to forex restrictions by the Nigerian government, many individuals and businesses rely on the parallel market for their pound sterling transactions.
CBN Exchange Rate vs. Black Market Rate
The CBN official exchange rate for pounds to naira is typically much lower than the black market rate. However, access to forex through official channels is often restricted, leading many Nigerians to seek alternative means of obtaining foreign currency.
For real-time updates on both black market and official exchange rates, Aboki Forex provides live tracking of forex trends, helping Nigerians monitor currency fluctuations.
Factors Affecting the Pounds to Naira Black Market Exchange Rate
Several economic and policy-driven factors influence the value of the naira against the pound in the black market:
1. Forex Scarcity
The limited supply of pounds through official channels forces individuals and businesses to turn to the parallel market, increasing demand and pushing up exchange rates.
2. High Demand for Pounds
Nigerians studying in the UK, importers, and travelers all contribute to the high demand for the British pound. This demand puts pressure on the naira, leading to depreciation.
3. Government Forex Policies
CBN’s strict forex control measures, including restrictions on accessing pounds from banks, create artificial scarcity in the market. These policies push more people toward the black market.
4. Inflation and Economic Instability
High inflation rates in Nigeria erode the value of the naira, making foreign currencies like the pound more expensive. Economic instability also contributes to fluctuations in forex rates.
5. Speculation and Market Manipulation
Currency traders and speculators influence exchange rates by hoarding pounds and selling them at higher rates during peak demand periods.
Effects of the Exchange Rate on the Nigerian Economy
The rising black market exchange rate for pounds to naira has several economic consequences:
1. Increased Cost of Imported Goods
Many essential goods in Nigeria, including machinery, vehicles, and luxury items, are imported from the UK. A weaker naira means higher import costs, which are passed on to consumers.
2. Inflationary Pressures
As the naira loses value against the pound, the cost of goods and services in Nigeria rises, contributing to inflation and reducing purchasing power.
3. Higher Cost of Education and Travel
Nigerians studying in the UK or traveling for medical reasons face higher expenses due to the rising exchange rate. Tuition fees and accommodation costs become more expensive in naira terms.
4. Challenges for Businesses
Companies that rely on importing goods from the UK face increased costs, which affect profitability and could lead to higher prices for consumers.
Government Measures to Stabilize the Naira
The Nigerian government and the Central Bank of Nigeria (CBN) have introduced various measures to stabilize the naira and reduce reliance on the black market. Some of these measures include:
- Increasing forex supply through official channels
- Encouraging non-oil exports to boost foreign reserves
- Cracking down on illegal forex transactions
- Implementing monetary policies to control inflation
However, despite these efforts, the black market remains the primary source of forex for many Nigerians due to the limitations of official channels.
Future Outlook for Pounds to Naira Exchange Rate
Analysts predict continued volatility in the black market exchange rate unless Nigeria strengthens its forex policies and enhances economic stability. For the naira to regain strength, the government needs to improve forex liquidity, diversify revenue sources, and attract foreign investment.
For daily updates and analysis on Nigeria’s forex market, visit Investors King, a leading platform for financial news and currency exchange insights.
