Naira strengthens slightly: Dollar falls to ₦1601.85 in black market — 0.51% decrease

Dollar Sells at ₦1601.85 — a 0.51% Drop from Yesterday

As of 29th April 2025, the Nigerian Naira experienced a modest strengthening in the parallel market, with the dollar selling at ₦1601.85, reflecting a 0.51% decrease from ₦1610 the previous day. This shift underscores ongoing market volatility shaped by foreign exchange (forex) demand, supply pressures, and evolving monetary policies by the Central Bank of Nigeria (CBN).

Black Market Exchange Rates Today

🔹 USD to NGN (Dollar)

• Buying Rate: ₦1,600
• Selling Rate: ₦1,601.85

🔹 EUR to NGN (Euro) (as of 29th April 2025)

• Buying Rate: ₦1,775
• Selling Rate: ₦1,825

🔹 GBP to NGN (British Pound)

• Buying Rate: ₦2,095
• Selling Rate: ₦2,147.38

🔹 CNY to NGN (Chinese Yuan)

• Buying Rate: ₦200
• Selling Rate: ₦220

These figures represent prevailing rates in the parallel market, commonly used by businesses and individuals unable to access official forex channels.

 Why Does the Black-Market Rate Differ from the Official Rate?

Despite recent policy reforms aimed at unifying Nigeria’s exchange rates, the black-market remains active due to several persistent factors:

1. Restricted Access to Official Forex

• High Demand, Limited Supply: Nigeria’s import-heavy economy drives continuous demand for foreign currency.
• Bureaucratic Bottlenecks: The formal process often involves strict documentation and usage limitations, pushing many to the more accessible black-market.

2. Market Distortions

• Artificial Pegging: Past CBN interventions have sometimes kept the official rate higher than the market equilibrium.
• Legacy of Multiple Windows: Prior systems with varied rates for different sectors encouraged arbitrage and widened the rate disparity.

3. Economic and Market Dynamics

• Inflation and Devaluation Fears: Elevated inflation erodes Naira’s value, fueling demand for stable foreign currencies.
• Speculative Activity: Traders reacting to devaluation rumors can accelerate parallel market volatility.

4. Informality and Flexibility

• Unregulated Operations: Rates in the black market are set by supply and demand, free from central oversight.
• Regulatory Evasion: Some users prefer the black market to bypass taxes or transaction limitations.

5. Policy Influence

• Monetary Tightening or Easing: Changes in interest rates or money supply directly affect forex dynamics.
• CBN’s Reforms: Recent steps to float the Naira more freely in the Nigerian Foreign Exchange Market (NFEM) have helped narrow the black-market gap.

 Outlook

In early 2025, authorities have stepped up efforts to stabilize the exchange landscape. The CBN’s decision to increase dollar supply and let the Naira float more openly in official markets has yielded initial progress. Nevertheless, Nigeria’s underlying structural challenges — inflation, forex scarcity, and economic uncertainty — continue to shape the black-market terrain.

For live updates, consult trusted sources such as Aboki Forex and the Central Bank of Nigeria.