Nigeria’s exchange rate continues its turbulent ride, with the Naira taking a hit in both official and parallel markets. According to data from FMDQ Securities Exchange, the Naira opened at ₦1,534.50 per $1 on January 28, 2025, but slightly strengthened to close at ₦1,510.72 per $1 on January 29. However, the black market tells a different story, with the dollar exchanging as high as ₦1,628 per $1, reflecting the persistent gap between the official and street rates.
Despite the Central Bank of Nigeria’s (CBN) efforts to unify the foreign exchange market, volatility remains. The CBN had earlier announced the abolition of multiple FX segments, consolidating them under the Investors & Exporters (I&E) window. This move was aimed at improving transparency and efficiency, but rising demand for dollars continues to put pressure on the Naira. Market reforms, including the “Willing Buyer, Willing Seller” model, have been introduced, yet speculative trading and economic concerns keep fueling depreciation.
With Nigeria’s foreign exchange market now largely dictated by market forces, the Naira’s future depends on key economic fundamentals—dollar inflows, inflation control, and investor confidence. While a free-floating exchange rate gives room for real market pricing, its impact on businesses and consumers remains a major concern. Whether the CBN’s policies will eventually stabilize the currency or if more interventions are needed remains to be seen.