What is $1 to Naira in The Black Market?

As of June 3, 2025, the exchange rate for the US dollar (USD) to Nigerian naira (NGN) in the parallel market, commonly known as the black market, is approximately ₦1,610 per $1. This rate reflects the buying price, while the selling rate is slightly higher, around ₦1,620 per $1.

Knowing what $1 is to Naira in the Black Market helps individuals and businesses make better financial decisions. It reflects the true cost of obtaining foreign currency when official channels are limited or inaccessible.

Factors Influencing the Black Market Exchange Rate

The black market exchange rate differs from the official rate set by the Central Bank of Nigeria (CBN) due to several factors:

• Limited Dollar Supply: The official market often experiences a shortage of US dollars, leading individuals and businesses to seek alternative sources.
  
• High Demand: There is a consistent demand for foreign currency for various purposes, including international trade, travel, and remittances.
  
• Regulatory Constraints: Strict regulations and controls on foreign exchange transactions can push individuals to engage in the parallel market.
  

Implications of the Black Market Exchange Rate

The disparity between the official and black market exchange rates has several implications:

• Inflationary Pressures: A higher black market rate can lead to increased costs for imported goods, contributing to inflation.
  
• Economic Distortions: The existence of a parallel market can distort economic indicators and affect policy decisions.
  
• Impact on Businesses: Companies relying on imports may face challenges in budgeting and pricing due to fluctuating exchange rates.