The foreign exchange market in Nigeria is dominated mostly with transactions of the United States Dollar (USD). The US dollar is the most popular foreign currency in Nigeria today; this is due to the huge demand for it by many Nigerians.
Nigerians from all walks of life require the dollar for various purposes such as importation, tuition fees payment, expatriates, international travelers, medical tourism, corrupt politicians, capital flight and much more. This unending appetite for the US Dollar has resulted in a continuous depreciation of the Naira over the years. In 1980, the Nigerian Naira was among the strongest currencies in the world, but has been devalued several times now making it one of the weakest African currencies in 2018.
Dollar to Naira Black Market Exchange Rate (Updated Daily)
Naira – USD
Sell: N362 per 1 USD
Buy: N365 per 1 USD
Since 2015, the fall in the international price of crude oil has negatively impacted on the Naira. Nigeria’s earnings from the sale of crude oil have been insufficient to meet the increasing demand for the dollar at the forex market. This shortfall continues to affect the stability of the Naira against the dollar.
The Central Bank of Nigeria has a constitutional role of ensuring the stability of the Naira against foreign currencies. The CBN has been implementing various measures to ensure the Naira is relatively stable against the US Dollar, one of which is the ban placed on 41 imported items from accessing forex. Recently the banking regulator also imposed a ban on fertilizer importation. This forex restriction have yielded positive results in the Nigerian economy, protected local manufacturers and also ensured the stability of the Naira against the US Dollar.
Presently, Nigeria maintains multiple exchange rates for the dollar to Naira such as the CBN official rate, NAFEX, NIFEX, Parallel (black) market rates e.t.c. The CBN rate is the cheapest among all the various exchange rates. The CBN official rate is the price at which the Central Bank sells dollars to the banks and large financial institutions. The various banks in Nigeria also offer different rates for their customers when using their debit cards for making online payments on international websites and POS. These bank rates are arbitrary usually hovering around the parallel market rates, meanwhile the banks also purchase dollar from their customers at rates hovering around the CBN interbank rates.
Many Nigerians are familiar with the black market for their retail purchase of the dollar. Because of the unregulated nature of the black market and the fraudulent activities of some of the Aboki exchangers, we strongly advise you carry out your forex transactions at the offices of registered Bureau de change operators.