The Dollar to Naira exchange rate continues to reflect rising pressure in the black market as demand for foreign currency outpaces supply.
As of today, Tuesday, May 20th 2025, the Naira weakened further, showing sustained volatility amid limited Central Bank of Nigeria (CBN) intervention and increased speculative activity.
Dollar to Naira Exchange Rate Today – Black Market
Based on data compiled from major parallel market dealers and Aboki Forex, the current Dollar to Naira black market rates are:
Buying Rate: ₦1,630 per US Dollar
Selling Rate: ₦1,640 per US Dollar
The ₦10 spread reflects growing market uncertainty and rising transaction demand, particularly among importers and international service users who are unable to access official forex windows.
How Much is Dollar to Naira Today in Black Market?
If you’re searching for how much is dollar to naira today in black market, the answer is ₦1,640 per dollar for selling and ₦1,630 per dollar for buying as of Tuesday, May 20th 2025. These rates apply to major trading centers in Lagos, Abuja, Port Harcourt, and Kano but may vary slightly based on volume and dealer margins.
Official vs. Black Market Dollar to Naira Rate
While the black market rate hovers at ₦1,640/$1, the Central Bank of Nigeria (CBN) official exchange rate remains considerably lower at approximately ₦1,470/$1. The wide spread of ₦170 underscores Nigeria’s persistent forex challenges and limited access to official dollar supply channels.
Due to these gaps, the black market remains the go-to source for many Nigerians who require forex for business, education, travel, and medical expenses.
Factors Driving the Dollar to Naira Black Market Rate
Several economic and policy issues are contributing to the sustained depreciation of the Naira in the parallel market:
Forex Supply Shortages: The CBN’s reduced intervention and scarcity of official dollar allocations have forced more demand into the black market.
Import Pressure: Nigeria’s heavy dependence on imported goods drives consistent demand for the dollar.
Speculative Activity: Due to uncertainty around future forex reforms and policy actions, some investors and businesses are hedging in dollars.
Weak External Reserves Growth: Despite stable oil prices, Nigeria’s reserves have seen only marginal increases, limiting CBN’s ability to defend the Naira.
Delayed Reforms: Structural economic reforms expected to boost investor confidence and attract foreign inflows are yet to yield significant results.
Outlook for the Dollar to Naira Exchange Rate
Analysts expect the Naira to remain under pressure in the near term unless there is a substantial improvement in dollar supply through official sources. The upcoming Monetary Policy Committee (MPC) meeting and any new fiscal or monetary policy announcements will be key factors influencing market sentiment.
In the absence of reforms that boost non-oil exports and encourage capital inflow, parallel market rates may continue to climb.
Conclusion
As of Tuesday, May 20th 2025, the black market Dollar to Naira exchange rate stands at ₦1,630 for buying and ₦1,640 for selling. The widening gap between official and parallel rates highlights deep-rooted structural issues in Nigeria’s forex market.
Disclaimer: Black market exchange rates are unofficial and can vary by location and transaction volume. Always verify current rates with trusted sources before conducting large forex transactions.