Dollar to Naira Exchange Rate Today: Latest Update on Official and Black Market Rates

The Nigerian currency held its ground at the official foreign exchange window on Friday, while continuing to trade weaker in the parallel (black) market, highlighting ongoing pressure in the country’s forex system.

Official Market Rate (CBN and Investors & Exporters Window)

At the Nigerian Foreign Exchange Market (NFEM), also known as the Investors and Exporters (I&E) window, the US dollar traded around ₦1,460/$1, reflecting a slight dip from previous sessions earlier in the week.

This rate is what most corporate importers, exporters, and financial institutions operate with when conducting official transactions under the oversight of the Central Bank of Nigeria (CBN).

Black Market Rate Still Higher

Meanwhile, the parallel market, where cash-based foreign exchange transactions occur, remained significantly higher.
Forex dealers in Lagos, Abuja, and other major cities quoted the dollar between ₦1,495 and ₦1,515/$1, with some retail transactions closing at the upper range of ₦1,515.

This keeps the street exchange rate at an average of ₦1,500/$1, maintaining a wide gap between the official and black market rates.

Impact on Businesses and Consumers

The widening difference between both markets continues to affect importers, travelers, and small business owners.

• Businesses transacting through official channels enjoy slightly lower rates but face delays due to limited dollar liquidity.
• Individuals who rely on the parallel market for travel, remittances, or dollar-denominated purchases are forced to pay more, pushing up the cost of goods and services in the economy.

This situation has direct implications for inflation, import prices, and consumer purchasing power, making foreign exchange management a key issue for both policymakers and investors.

Why the Exchange Rate Gap Persists

Experts attribute the continued spread between the official and parallel markets to several factors:

• Limited dollar supply in the official window.
• Rising demand for cash dollars for business and personal use.
• Market sentiment driven by investor confidence and CBN policy direction.

Analysts believe that while recent monetary policies have helped stabilize the official rate, more consistent dollar supply and structural reforms are needed to narrow the gap and strengthen the naira’s value.

Market Outlook

Forex traders and analysts are closely watching for the CBN’s next round of interventions, particularly in the FMDQ/NAFEM window, as well as trends in global dollar movements.

If official FX liquidity increases, the naira could maintain stability or even appreciate slightly. However, persistent cash demand and import pressure may keep the black market rate elevated in the near term.

Investors are also advised to monitor global oil prices, external reserves, and government fiscal policy updates, as these elements will continue to influence Nigeria’s exchange rate direction in the coming weeks.