Today’s Dollar to Naira exchange rate reflects Nigeria’s evolving forex market, where official and black market rates significantly diverge. According to FMDQ data, the Naira opened at ₦1551.69 per $1 on January 10, 2024, and closed at ₦1548.89 on January 13, 2025. However, the black market paints a different picture, with rates reaching as high as ₦1667 per $1 despite Central Bank of Nigeria (CBN) reforms to unify the forex market.
In June 2023, the CBN announced the unification of all forex windows into the Investors and Exporters (I&E) window to improve transparency and efficiency. Policies like the “Willing Buyer, Willing Seller” model and reintroduced trading measures aim to enhance market operations. Transactions for essentials like medical bills and school fees are still processed through deposit banks, maintaining access to crucial foreign exchange services.
The shift to a freer-floating exchange rate signals Nigeria’s effort to align its currency valuation with market forces. By easing control of the Naira, the CBN aims to promote stability and investor confidence. While this approach allows market dynamics to dictate rates, managing the gap between official and parallel market rates remains critical for Nigeria’s economic health.