Nigeria’s foreign exchange market continues to witness fluctuations as the Naira opened at ₦1,521.94/$1 on January 30 but strengthened slightly to ₦1,474.78/$1 by January 31 in the official market. Despite this, the black-market rate remains significantly higher, reaching ₦1,620/$1, highlighting ongoing pressure on the local currency despite the Central Bank’s unification of FX segments.
The CBN’s policy shift, announced in June 2023, aimed to merge all FX windows into the Investors & Exporters (I&E) window, adopting a “Willing Buyer, Willing Seller” model. This move was intended to improve transparency and market efficiency, ensuring all transactions—ranging from medical expenses to business travel allowances—are processed through commercial banks at market-determined rates.
By allowing the Naira to float freely, Nigeria has embraced a market-driven exchange rate system, reducing artificial controls. However, the widening gap between official and parallel market rates raises concerns about liquidity, speculation, and the long-term stability of the currency. While the CBN assures continued adjustments, businesses and individuals remain watchful as the Naira navigates this evolving economic landscape.