In 1972, one U.S. dollar to naira was N0.658, meaning the Nigerian currency was strong against the USD and other foreign exchange. Today, the naira is in bad shape. At the time of this update, $1 is valued at N415 at the Central Bank of Nigeria exchange rate while it’s over NGN700/USD at the parallel market.
This post focuses on the history of Naira against the USD from 1972 to 2022 even as the apex bank claims that it would continue to stabilize the forex market. The rates on this post also apply to the cbn exchange rate for school fees
CBN Exchange rate today
US Dollar to Naira exchange rate is set as ₦410.11 by the Central Bank of Nigeria (CBN) at this time of updating this Wednesday, August 4, 2021
|July 14, 2022||US Dollar||N413.9||N414.9||N415.9|
In this post, we’ll also share with you the history of CBN exchange rate of US dollar to Naira from 1972 to 2020. You can also use our currency converter to check the official rate in real-time.
Today, the current CBN exchange rate of the dollar to naira is N380/$1. The adjustment was carried out on Thursday, August 6th 2020.
It was N381/$1 at the beginning of the week, but on Friday, October 09, 2020 CBN exchange rate stood at N380 against the US dollar showing a %0.26 decrease for USD rate against Naira in CBN.
As of August 2020, the devaluation would be the second of the official exchange rate after its adjustment from on March 20, 2020, from N307 to N361.
Sometimes ago, we addressed a question by one of our followers, can I buy US dollars from the CBN? And we hope you check that out.
If you don’t want to buy dollar or other currencies at the black market rate (which is usually high), you can get access to foreign currencies through the Bureau De Change (BDC) in Nigeria which are funded by the CBN or you buy from your local bank (done through online transaction).
Why The Current Naira Devaluation By CBN?
CBN didn’t issue an official statement to the last devaluation, but a few weeks ago, the International Monetary Fund (IMF) and the World Bank advised Nigeria’s apex bank to devalue Naira.
World Bank, IMF, and advanced countries that are strong monetarily do not grant loans without clearly spelling out their terms and conditions.
One of the conditions for the disbursement of the loan was a unification of the exchange rate which most analysts believe the CBN has dithered on for months.
It was gathered that the World Bank committee working on the loan was meant to present to their board on August 6, 2020, until it was moved to a later date.
Critics suggest this may have been due to the delay to meet the conditions precedent to granting the initial $1.5 billion loan some of which includes the $1.5 billion loan.
“The amount we are raising in the first instance is $1.5 billion for FG and around September October we are hoping to close out on the facility meant for states and the amount is meant to be $1-1.5 billion.” Zainab Ahmed, the Minister of Finance was quoted as saying during one of her press conferences with newsmen in Abuja.
She said Nigeria raising “in the first instance is $1.5 billion for FG and around September October we are hoping to close out on the facility meant for states and the amount is meant to be $1-1.5 billion.”
When measuring the value of one currency against another, you are simultaneously buying one currency and selling another, this is known as currency trading. Popular and strongest currencies in the world are traded most.
Why is the CBN exchange rate lower than the Parallel market?
The CBN isn’t just to regulate the activities of banks in Nigeria but to perform other monetary functions which include price stability of Naira to other currencies around the World.
The legal backing for the monetary policy of the CBN can be found in the CBN Act of 1958 as amended in CBN Decree No. 24 of 1991, CBN Decree Amendments 1993, No. 3 of 1997, No. 4 of 1997, No. 37 of 1998, No. 38 of 1998,1999 and CBN Act of 2007 among others.
In order to facilitate the attainment of price stability and to support the economic policy of the Federal Government, the Monetary Policy Committee (in this Act referred to as “the MPC”) was set up.
Members of the Monetary Policy Committee
- Governor of CBN who is also the Chairman
- Four Deputy Governors of the Bank
- Two members of the Board of Directors of the Bank
- Three members appointed by the President; and
- Two members appointed by the Governor
timeline of Naira to US Dollar CBN Exchange Rate from 1972 till date
Kindly note that the US to Naira black market exchange rate is completely different from the CBN rate, as such, let’s a historical peep into the history of naira to dollar exchange rate history from 1972 till date.
From 1972 to 1983
From below you can see that one US dollar was N0.658 in Nigeria in 172, that’s two years after the end of Civil War.
The Naira stabilized against the US dollar through the government of Gen. Yakubu Gowon to the government of Alh Shehu Shagari who assumed office as the Civilian president on October 1, 1979 till December 1983 when he was overthrown by the military.
See the exchange rate between 1972 to 1983
|YEAR (DATE)||NAIRA TO US DOLLAR|
|1972||$1 = N0.658|
|1973||$1 = N0.658|
|1974||$1 = N0.63|
|1975||$1 = N0.616|
|1976||$1 = N0.62|
|1977||$1 = N0.647|
|1978||$1 = N0.606|
|1979||$1 = N0.596|
|1980||$1 = N0.550|
|1981||$1 = N0.61|
|1982||$1 = N0.673|
|1983||$1 = N0.724|
From 1984 to 1998
During the military junta of Major-Gen Muhammadu Buhari of 1984 till the year he was toppled in 1985, the Nigerian Naira lost value making the US dollar to gain against the local currency here.
It moved from N0.724/$1 to N0.765/$1 in 1984 and before the end of his regime, the Naira was N0.765 against the US dollar.
The US dollar broke the barrier of kobo to assume a full naira by the time Gen. Ibrahim Babangida took over power and reached an all-time high of N2.02 and before he stepped aside in 1993, $1 was N17.30
The interim government of Chief Earnest Sonekan had no time to implement any monetary policy as he was overthrown after three months by Gen Sani Abacha.
It was during his regime that the dollar gained significantly against the Naira at N22.33 with a slight devaluation to N21.89, and didn’t go beyond this exchange rate till he died on June 7, 1998, which the regime of Gen Abdulsalami Abubakar was able to maintain till he transmitted power to a democratically elected government on May 29, 1999.
See the history of the exchange rate below:
|YEAR (DATE)||DOLLAR TO NAIRA|
|1984||$1 = N0.765|
|1985||$1 = N0.894|
|1986||$1 = N2.02|
|1987||$1 = N4.02|
|1988||$1 = N4.54|
|1989||$1 = N7.39|
|1990||$1 = N7.39|
|1991||$1 = N8.04|
|1992||$1 = N9.91|
|1993||$1 = N17.30|
|1994||$1 = N22.33|
|1995||$1 = N21.89|
|1996||$1 = N21.89|
|1997||$1 = N21.89|
|1998||$1 = N21.89|
From 1999 to 2015
The CBN exchange rate was significant in Nigeria between 1999 to 2015 as it’s the first time after 16 years of military rule, the monetary policy of the country would be managed by the civilian government.
During this period, three presidents under the same party Peoples Democratic Party (PDP) managed Nigeria’s resources.
Their monetary policies played a significant role in shaping the value of Naira against the US dollar.
President Olusegun Obasanjo met N21.89/$1 CBN exchange rate, within a year, it jumped to N85.98/$1 and before he left office in 2007, one dollar was between N120 to N125.
See the history of the exchange rate in the table below:
|YEAR (DATE)||DOLLAR TO NAIRA CBN RATE|
|1999||$1 = N21.89|
|2000||$1 = N85.98|
|2001||$1 = N99-N106|
|2002||$1 = N109-N113|
|2003||$1 = N114-N127|
|2004||$1 = N127-N130|
|2005||$1 = N132-N136|
|2006||$1 = N128.50-N131.80|
|2007||$1 = N120-N125|
|2008||$1 = N115.50-N120|
|2009||$1 = N145-N171|
|2010||$1 = N148.21-N154.8|
|2011||$1 = N151.05-N165.1|
|2012||$1 = N155.09-N161.5|
|2013||$1 = N153.21-N162.9|
|2014||$1 = N170-N199|
|2015||$1 = N199|
CBN Exchange Rate US Dollar to Naira from 2015 till Date
On May 29, 2015, the PDP government of Dr Goodluck Jonathan handed over power to the APC-led government of President Muhammadu Buhari.
It was the first bank time an opposition party would defeat the ruling party at the centre. This ushered in Buhari, a former military ruler.
Before the end of 1999, $1 was exchanged for N300, though it was N230 before the general elections that ushered in the APC-led government of Buhari.
It has been rising since then at the CBN exchange rate while the apex bank has continued to put in measures to stabilise the Naira against other international currencies. The black market rate has not been palatable as well.
See the CBN exchange rate US dollar to Naira in the table below:
|YEAR (DATE)||DOLLAR TO NAIRA CBN RATE|
|2016||$1 = N300-N320|
|2017||$1 = N360|
|2018||$1 = N360|
August 2021: $1= N410
December 2021: $1=NGN411.74
March 2022: $1=NGN416.23
April 28, 2022: NGN415.83
Can Naira be Equal to US Dollar in Nigeria?
In March 2015, a few days before the general elections, Muhammadu Buhari, presidential candidate of the All Progressives Congress (APC), promised to ensure that the naira makes a significant gain against the US dollar during the South-East Presidential rally of the party at Dan Anyiam Stadium, Owerri.
He didn’t specifically say he would make $1 to N1, he did lament that the US dollar to naira exchange rate did not speak well for Nigeria’s economy, but he was misquoted at the time. The government had to issue a statement that it didn’t make such a promise.
“It is sad that the value of the naira has dropped to more than N230 to one dollar. This does not speak well for the nation’s economy.”
Unfortunately, Buhari’s government has failed to address the depreciation of naira. In fact, the CBN exchange rate for school fees in 2021 means aspiring students who want to attend foreign institutions would have to pay in terms of the value of naira against the host country
You may want to ask: Is it really possible to make naira regain its value against the US dollar, Euro, pounds, and other currencies?