Today’s Black Market Exchange Rate in Nigeria

Last updated on June 2nd, 2023 at 09:10 pm

From Muhammadu Buhari to Bola Ahmed Tinubu, this page is dedicated to tracking the exchange of US Dollar to Naira at the parallel market.

What is a parallel market in FX?

A parallel market is an unofficial price at foreign exchange market where traders buy and sell USD, GBP, EURO for the local currency. In Nigeria, for instance, there is a wide margin between the official rate and the unofficial rate. It is prevalent in a country where there is a multiple exchange rate

At the time of updating this post, the CBN official rate was NGN461.56 while the parallel rate was NGN768. That’s a margin of NGN306.44. The naira is among the top worst-performing currencies against the USD in research by Prof. Steve Hanke

The black market is usually referred to as an illegal market that is operated outside the official regulations. In the FX market, it is the responsibility of the Central Bank of Nigeria (or the apex bank of any country) to intervene regularly to prevent the naira from losing its value against its peers in the FX market.

Prices that are not supported by the Central Bank of Nigeria (CBN) characterized the operation of the parallel market of foreign exchange in a country that operates a multiple exchange rate.

The short supply of FX at the official market made the black market so popular that investors patronise it more than the official market because of its accessibility.

To make that this page reflects the prevailing rate at the unofficial FX market, this page shall be updated in the morning between 8:30 AM to 11:00 AM; in the afternoon between 12:30 to 2:30 while the evening trading sessions that be updated between 4:00 PM to 6:00 PM

Disclaimer: There may be a slight difference between the rate you see on this page and the rate at the FX market. Be security cautious out there

What is the current Black market Exchange Rate in Nigeria?

We track the rates on more than three sites for the latest rate of the black market, so, this page shows Dollar to Naira, EUR to Naira, and Pound to Naira rates in the morning, afternoon, and the evening trading session between buyers and sellers.

1) The FX market is volatile trade with caution

2) When you hoard dollars and other currencies, you either lose or gain. It’s 50-50! Economists say hoarding currency is counter-productive, don’t hoard more than you can afford to lose.

Morning Trading Sessions

Dates	Currencies	Buy (NGN)	Sell (NGN)	Source
June 2, 2023	USD	745	755	BDC/Aboki rate
	GBP	930	940	”
	EUR	795	810	”
June 2, 2023	USD	740	750	Bank Transfer or Inflow rate
	GBP	930	940	”
	EUR	805	810	”

Afternoon Trading sessions

Dates	Currencies	Buy (NGN)	Sell (NGN)	Source
June 2, 2023	USD	745	752	Aboki rate
	GBP	935	943	”
	EUR	790	805	”
June 2, 2023	USD	735	745	Bank Transfer or Inflow rate
	GBP	920	950	”
	EUR	775	795	”

Evening trading sessions:

Dates	Currencies	Buy (NGN)	Sell (NGN)	Source
June 2, 2023	USD	744	750	Aboki rate
	GBP	930	943	”
	EUR	790	807	”
June 2, 2023	USD	738	752	Bank Transfer or Inflow rate
	GBP	920	950	”
	EUR	775	805	”

There shouldn’t have been a black market in foreign exchange in the first place. Unfortunately, the government of Nigeria created a policy that led to it a long time ago and it’s now extremely difficult for them to arrest the situation.

Why Black market rate in the Forex market?

If the apex bank fails to enforce its policy, the market will become a free-for-all whereby every seller and buyer operates an exchange rate that favors both parties.

What happens in an economy where the black market reigns is that the apex bank losses part of its monetary control, especially when the official rate is not accessible to investors.

The popularity of the black market in Nigeria creates a more porous foreign exchange. It also put pressure on the naira. It makes FX users see the black market rate as their ‘savior’ in times of emergency.

For instance, getting approval to meet foreign school fees needs on the CBN’s TMS for FX takes four weeks or more. The delay pushes a lot of students and importers who need FX for their business to the black market.

TMS means Trade Monitoring System. It is a platform created by Nigeria’s apex bank for Nigerians to submit their applications for FX.

Dramatic changes in the Black market exchange rate

There has been a dramatic change in the margin between the official rate and the unofficial rate within a period of two-year.

For instance, one US Dollar is exchanged at NGN470 by the end of 2020 (December 31) at the unofficial market through the New Year (2021).

But before the end of November 2021, the USD had gained more against Nigeria’s currency as it ended the month at NGN540 to USD as can be seen in one of our daily updates.

Methodology:

The rates you see on this page are based on trading between buyers and sellers on FX black market tracking platforms like ngnrates.com, nairablackmarket.com, Peer-to-Peer platforms (P2P), and FX traders popularly called aboki on the streets of Allen, Ikeja, Lagos, Nigeria’s commercial capital.

Conclusion:

The official exchange rate is the rate set by the Central Bank of Nigeria (CBN). It is one of the monetary policies of the apex bank.

The unofficial foreign exchange traders and the market rate is unregulated, it is considered illegal and anyone who trades in this market could be arrested if the apex bank is determined to exercise its monetary power as we saw in the case of CBN vs abokifx.com in 2021.

The black market exchange rate of USD to the Naira you would get in Lagos may not be the same rate in Ibadan, Abeokuta or Kaduna.

The economic activities as they relate to traveling in and out of investors and traders plus demand play a huge role in the rate you get in your location.

References:

1. Saylordotorg. “Black Markets”. github.io.
2. Naira Black Market. “Black Market Exchange Rates”. nairablackmarket.com
3. Central Bank of Nigeria. “Exchange Rates.” cbn.gov.ng
4. NG Nrates. “Black Market”. ngnrates.com