Advertisements
LAGOS, NIGERIA — As Nigerians prepare to bid farewell to 2025, the foreign exchange market continues to reflect a significant gap between official and parallel market rates.
Ejes Gist News reports that the naira remains under pressure, with both the Central Bank of Nigeria (CBN) and black market rates showing distinct trends.
Official CBN / NAFEM Rate
The United States Dollar (USD) to Nigerian Naira (NGN) is trading between ₦1,445 and ₦1,467 per $1 in the official market. These rates are primarily influenced by the Central Bank’s interventions and the Nigerian Autonomous Foreign Exchange Market (NAFEM) activities. Banks and registered forex bureaux transact largely at these official rates, which reflect government policy on foreign exchange management.
Black Market Rate
On the parallel or black market, the dollar is exchanging for approximately ₦1,475 to ₦1,485 per $1, according to independent forex tracking sources. This rate remains higher than the official window due to supply shortages and continued demand from importers and individuals seeking foreign currency outside regulated channels.
The parallel market continues to serve as a barometer of the naira’s real-time purchasing power, often reflecting immediate market pressures and liquidity constraints.
What This Means for Nigerians
The difference between the official and black market rates, often referred to as the naira premium, highlights the persistent challenges in Nigeria’s forex ecosystem. While official rates govern corporate and institutional transactions, everyday Nigerians frequently rely on black market rates for cash transactions, travel, and import payments.
- Official rates: ₦1,445–₦1,467 per $1
- Black market rates: ₦1,475–₦1,485 per $1
Factors Driving Exchange Rate Fluctuations
Several elements are influencing the current exchange rate trends:
Advertisements
- Demand vs. Supply: Persistent dollar demand for imports and foreign obligations continues to exceed supply.
- CBN Interventions: The apex bank periodically injects foreign currency to stabilize the naira.
- Market Sentiment: Local economic conditions, global currency movements, and investor confidence affect daily fluctuations
Also See : Dollar To Naira Today December 30, 2025: Black Market & CBN Rates
Dollar to Naira rates for December 31, 2025:
| Market Type | Buy Rate (₦) | Sell Rate (₦) | Notes |
|---|---|---|---|
| CBN / NAFEM | 1,445 | 1,467 | Official rate for banks and regulated forex transactions |
| Black Market | 1,475 | 1,485 | Parallel market rates reflecting cash demand and limited supply |
Outlook
As 2025 comes to a close, the spread between the official and parallel market rates remains a focal point for policymakers and Nigerians alike. Analysts predict that until dollar supply improves and structural reforms take hold, the black market premium is likely to persist into the early months of 2026.
Nigerians are advised to monitor both official and parallel rates to make informed decisions about transactions and investments involving the US dollar.
Ejes Gist News reports that these rates provide the most up-to-date snapshot of Nigeria’s foreign exchange landscape at the close of 2025, highlighting ongoing challenges in managing currency stability amid high demand pressures.
