Today, the exchange rate between the Naira and the US Dollar in Nigeria sees a wide gap between official and black-market rates. Official data shows the Naira opened on November 14 at ₦1661.35 per $1 and closed on November 15 at ₦1652.25 per $1. However, the black-market rate has surged to around ₦1,745 per Dollar, reflecting continued pressure on the Naira.
Despite the Central Bank of Nigeria’s (CBN) effort to unify the foreign exchange market, demand for Dollars remains high. Earlier in 2023, the CBN abolished segmented FX markets, moving all transactions into the Investors & Exporters (I&E) window under the “Willing Buyer, Willing Seller” model. This shift aimed to allow the Naira to float, letting market forces set its value.
While the government continues to manage some aspects of FX trading, the floating exchange rate suggests a greater flexibility, allowing Naira rates to fluctuate based on supply and demand. The Naira’s depreciation in the black market underscores the ongoing challenges in stabilizing Nigeria’s currency amidst high demand for foreign exchange.