Naira Gains Value in Black Market, Almost Matches Official Rate

The Nigerian naira is finally showing signs of strength, especially in the black market where it recently gained value against the US dollar. This new development has brought the naira’s rate in the black market closer to the official rate, reducing the wide gap that has worried many Nigerians for months.

On Thursday, June 26, 2025, the naira traded at ₦1,575 per dollar in the black market. Just a few weeks ago, it was going for around ₦1,610. That’s a ₦35 gain, or about 2.2%, since the beginning of June.

In the official market, the naira also performed well. Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira traded at ₦1,549.26 per dollar stronger than the ₦1,581.58 recorded at the start of the month. That’s a ₦32.32 improvement, or about 2.08%.

Why is the naira gaining?

Experts say this boost is due to more dollar inflows into the country. Foreign portfolio investors (FPIs), exporters, and private companies have all added more dollars to the market. 

In just one week, Nigeria saw $1.03 billion come in, with FPIs accounting for over 67% of that.

The Central Bank of Nigeria (CBN) also helped by selling $86.6 million in the market to meet demand. This combination of increased supply and investor confidence seems to be working in the naira’s favour.

What does this mean?

When the black market and official exchange rates are close, it’s usually a good sign. It means the currency market is becoming more stable and less distorted. For businesses and individuals who depend on foreign exchange, a smaller gap reduces the risks and costs of getting dollars.

But it’s not all smooth yet

Despite these gains, analysts warn that the naira could still face pressure. Demand for dollars remains high, and if inflows slow down, the currency might lose some of its recent strength.

Still, the overall mood is hopeful. With continued support from investors and exporters, the naira could hold steady or even improve further in the coming weeks.

For now, Nigerians can breathe a little easier knowing that the naira is fighting its way back slowly, but surely.