The Nigerian foreign exchange market presented a mixed picture today as the British pound sterling traded at varying levels against the naira across official and black market segments. Latest data from NGNToday indicate continued pressure on the naira, driven by sustained demand for foreign currency and limited supply within the official window.
According to figures published by the NGNToday platform, the official exchange rate for the UK pound stood at ₦1,934 per £1, while the black market (parallel market) rate was quoted at ₦1,965 per £1. In a separate parallel market update, the pound was also exchanged at ₦1,965 per £1 across both buying and selling points, underscoring the dominance of the black market as the primary price setter for retail foreign exchange transactions.
Official Market: Managed Stability
The official rate of ₦1,934/£1 reflects ongoing efforts by monetary authorities to manage volatility and maintain relative stability within regulated channels. Analysts note that official rates often lag behind real-time market pressures, as access to pounds through authorised dealers remains limited and subject to strict documentation requirements.
Read related story from New Daily Prime: Naira under pressure as pound trades above ₦1,960 on black market – January 2, 2026
Businesses that rely on official forex windows—particularly importers of machinery, pharmaceuticals, and specialised services—continue to face delays and rationing, contributing to pent-up demand that frequently spills into the parallel market.
Black Market: Demand-Driven Pricing
In contrast, the black market rate of ₦1,965/£1 reflects immediate demand conditions. Currency dealers attribute the firm pricing of the pound to several factors, including overseas tuition payments, medical travel, UK-bound business transactions, and diaspora-related transfers.
The convergence of the buying and selling rate at ₦1,965 suggests a tight market with limited room for negotiation, indicating that demand is strong enough to absorb available supply without price discounts. This situation is common during periods when individuals and small businesses find it difficult to source foreign currency through official means.
Spread Highlights Structural Pressure
The gap of ₦31 between the official and black market rates continues to highlight structural imbalances within Nigeria’s foreign exchange system. While the spread is narrower than levels recorded during peak volatility periods, it still points to unresolved issues around forex liquidity, transparency, and accessibility.
Market observers caution that without a significant increase in foreign currency inflows—through exports, remittances, or foreign investment—the naira is likely to remain under pressure against major currencies such as the pound.
Implications for Consumers and Businesses
For consumers, the higher black market rate translates into increased costs for UK-related expenses, including school fees, visa processing, travel bookings, and online payments denominated in pounds. Businesses with UK supply chains are also adjusting pricing strategies to reflect the higher cost of foreign exchange.
Financial analysts advise individuals and firms to monitor exchange rate movements closely, as short-term stability can quickly give way to sharp adjustments in response to policy announcements or external economic shocks.
Outlook
Looking ahead, the pound-to-naira exchange rate is expected to remain sensitive to both domestic and global factors. Developments in the UK economy, changes in interest rates, and fluctuations in global capital flows could influence demand for the pound, while Nigeria’s foreign reserve position and export earnings will play a critical role on the supply side.
While today’s figures suggest relative calm, experts warn that this stability may be temporary. As full business activity resumes and demand for foreign exchange rises, further pressure on the naira cannot be ruled out.
NGNToday Exchange Rate Snapshot
UK Pound Official Rate: ₦1,934 / £1
UK Pound Black Market Rate: ₦1,965 / £1
As a leading source of real-time currency data, NGNToday continues to provide timely and reliable updates on official and black market exchange rates, helping Nigerians at home and in the diaspora make informed financial and business decisions in an evolving economic environment.
For more details, visit www.newdailyprime.news
