Nigeria’s exchange rate landscape saw a minor shift as the Naira appreciated slightly against the U.S. dollar in the official market. According to data from the Central Bank of Nigeria (CBN), the Naira strengthened to N1,517.24 per dollar on Friday, March 7, 2025, from N1,512.30 the previous day. However, this official rate differs significantly from the parallel market, where the Naira is trading as high as N1,555 per dollar, highlighting the persistent gap between regulated and street-level transactions.
Despite the CBN’s move to unify the foreign exchange market back in June 2023, allowing all forex transactions to flow through the Investors & Exporters (I&E) window, volatility remains. The “Willing Buyer, Willing Seller” model governs forex trades, ensuring that transactions are based purely on market demand. While the government aims for a more transparent system, the divergence between official rates and black market figures continues to raise concerns over liquidity and accessibility.
This ongoing battle between policy adjustments and market realities reflects a deeper economic struggle. While Nigeria has technically floated the Naira, the practical effects suggest continued intervention behind the scenes. The question remains: Can market forces alone stabilize the Naira, or will deeper structural reforms be needed to bridge the widening exchange rate gap?