Naira Extends Losing Streak Against U.S. Dollar
The Dollar to Naira exchange rate continues to reflect the dynamics of Nigeria’s parallel foreign exchange market. As of today, Wednesday, May 7th 2025, the Black Market Dollar to Naira exchange rate shows moderate fluctuations as currency traders respond to ongoing forex supply constraints and speculative demand.
Dollar to Naira Exchange Rate Today – Black Market:
According to market data gathered from Aboki Forex and verified local BDC sources, the exchange rates in the Lagos parallel market are as follows:
Buying Rate: ₦1,600 per US Dollar
Selling Rate: ₦1,610 per US Dollar
This means that individuals or businesses seeking to buy U.S. dollars from black market operators will pay ₦1,610 for each dollar, while those selling dollars will receive ₦1,600.
Official vs Black Market Dollar to Naira Exchange Rate
While the Central Bank of Nigeria (CBN) continues to implement its managed float exchange policy, the disparity between the official rate and the black market rate remains significant.
As of today, the official rate from the CBN stands at approximately ₦1,450 to the dollar, widening the premium in the black market to over ₦150 per dollar.
This persistent gap underscores the sustained demand pressure in the unofficial market, which remains the preferred avenue for many due to accessibility and transaction flexibility. Visit Investors King for regular updates and analysis on Nigeria’s forex market.
Market Overview and Factors Influencing the Rate:
Several factors continue to influence the black market exchange rate:
Scarcity of FX Supply: Limited forex supply to BDC operators and commercial banks has increased dependence on the parallel market.
Import Demand: Demand from importers for raw materials, finished goods, and services is exerting upward pressure on the dollar.
Speculative Hoarding: Uncertainty surrounding forex policies has driven individuals and corporates to hedge in dollars, further driving up the exchange rate.
Oil Revenue and External Reserves: Although crude oil prices remain above $85 per barrel, Nigeria’s foreign reserves have yet to show a sustained increase, affecting CBN’s ability to intervene aggressively.
Outlook for Dollar to Naira Exchange Rate
Analysts expect the Naira to face continued volatility in the coming weeks unless the CBN boosts dollar liquidity through official windows and adopts structural reforms that attract stable foreign inflows.
The upcoming Monetary Policy Committee (MPC) meeting may also influence investor sentiment and market reaction.
In the meantime, businesses and consumers operating in the import-dependent economy will need to monitor the black market rate closely to manage pricing and procurement decisions.
Conclusion
Today’s Black Market Dollar to Naira rate at ₦1,610 (selling) and ₦1,600 (buying) reflects the ongoing challenges in Nigeria’s foreign exchange ecosystem.
As long as demand continues to outstrip supply in official channels, the parallel market will remain a critical source of forex for many Nigerians.
