The dollar-to-naira exchange rate continues to reflect Nigeria’s evolving foreign exchange (FX) market. As of January 15, 2025, the official rate stood at ₦1,549.65 per dollar, closing marginally higher than Monday’s ₦1,549.33. However, on the parallel market, rates soared to ₦1,667 per dollar, underlining the ongoing challenges of currency disparity despite reforms by the Central Bank of Nigeria (CBN).
The CBN’s June 2023 circular marked a pivotal shift in Nigeria’s FX framework. The unification of all FX segments into the Investors & Exporters (I&E) window was designed to enhance transparency and flexibility. This move reinstated the “Willing Buyer, Willing Seller” model, enabling transactions at market-driven rates. Operational measures such as abolishing trading limits on oversold positions and introducing a central counterparty for clearing trades were also aimed at fostering a more competitive market.
These reforms signify Nigeria’s transition towards a free-floating naira, allowing market forces to determine exchange rates. While this step aligns with global best practices, its success hinges on sustainable economic policies and forex liquidity. The journey ahead may be bumpy, but it is a necessary stride toward a stable and transparent financial system.