The Naira continues to face challenges against the Dollar, with today’s (January 24, 2025) exchange rates revealing significant differences between official and black market figures. On the official market, the Naira opened at ₦1,557 per Dollar on January 22 but closed lower at ₦1,545.59 by January 23. Meanwhile, black market rates surged, trading as high as ₦1,660 per Dollar, highlighting the growing gap between regulated and informal currency markets.
In June 2023, the Central Bank of Nigeria (CBN) unified all foreign exchange windows into the Investors & Exporters (I&E) window to promote transparency and reduce market fragmentation. The CBN adopted a “Willing Buyer, Willing Seller” model, reintroduced an order-based system, and abolished trading limits on oversold FX positions. Despite these measures, the Naira’s free-floating nature means its value is increasingly shaped by market forces, leaving the local currency vulnerable to economic pressures.
The liberalization of Nigeria’s FX market reflects the government’s decision to let the Naira’s value be determined by supply and demand. While this approach can enhance transparency and attract investors, it has also exposed the economy to higher exchange rate volatility. For businesses and individuals, staying informed about the fluctuating rates is critical for effective financial planning in this evolving economic landscape.