On January 19, 2025, the Naira shows its resilience in the ever-evolving foreign exchange market. Official data from the FMDQ Security Exchange reveals that the Naira opened at ₦1560.20 per $1 on January 16, 2024, and closed stronger at ₦1547.58 per $1 on January 17, 2025. However, in the black market, the Dollar is trading at a steep ₦1,667 per $1, highlighting a sharp divergence from official rates.
Following the Central Bank of Nigeria’s (CBN) June 2023 reforms, the country’s FX market underwent a major transformation. The apex bank unified all FX segments into the Investors & Exporters (I&E) window to promote transparency and efficiency. Under this framework, foreign exchange transactions such as medical bills, school fees, and travel allowances are now processed through banks, using a “Willing Buyer, Willing Seller” model to drive operations.
This shift marks Nigeria’s move to a free-floating exchange rate system, where the Naira’s value is driven purely by market forces. While this approach fosters a more transparent and flexible market, the gap between official and parallel market rates remains a pressing challenge. The FX market’s evolution continues to shape the economic landscape, testing the resilience of Nigeria’s local currency.