The Nigerian Naira continues to face pressure in the foreign exchange market as the exchange rate for the U.S. Dollar to Naira fluctuates across both the official and parallel markets. As of today, Sunday, May 18, 2025, the exchange rate between the U.S. Dollar (USD) and the Nigerian Naira (NGN) reflects ongoing volatility in the currency market.
Black Market Dollar to Naira Rate – May 18, 2025
According to reports from currency traders in Lagos and Abuja, the black market exchange rate for the U.S. Dollar to Naira today stands at:
- Buying Rate: ₦1,610 per $1
- Selling Rate: ₦1,625 per $1
This marks a continued weakening of the Naira in the parallel market, as demand for the U.S. dollar remains high among importers, travelers, and businesses unable to access foreign currency through official channels.
Official CBN Dollar to Naira Rate – May 18, 2025
While the Central Bank of Nigeria (CBN) does not update exchange rates on weekends, the most recent available official rate from the apex bank is:
- ₦1,599.55 per $1
This rate reflects transactions processed through the Investors and Exporters (I&E) window, also known as the NAFEM market, which remains the regulated channel for official forex trading in Nigeria.
Key Differences Between Black Market and Official Rates
- The difference between the black market rate and the official CBN rate stands at over ₦25 per dollar as of today.
- This wide gap highlights ongoing challenges in Nigeria’s foreign exchange policy, including limited dollar supply, speculative demand, and the impact of inflationary pressures.
Why Is the Naira Falling Against the Dollar?
Several factors continue to affect the value of the Naira:
- Foreign Exchange Scarcity: Limited availability of dollars from official sources is pushing more people toward the black market.
- High Inflation Rate: Inflation in Nigeria has remained elevated, eroding the purchasing power of the local currency.
- Import Dependency: Nigeria’s reliance on imported goods places consistent demand on the dollar, especially among traders and manufacturers.
- Interest Rate Adjustments: The Central Bank’s monetary tightening and interest rate hikes have not yet stabilized the exchange rate in the parallel market.
Impact on Nigerians
- Travelers and Students Abroad: Higher black market rates mean increased costs for tuition, travel, and living expenses.
- Importers and SMEs: Many small and medium businesses sourcing raw materials from abroad face rising costs, affecting product prices and profit margins.
- Ordinary Citizens: The depreciation of the Naira contributes to rising prices of everyday goods and services, worsening economic hardship for households.
Exchange Rate Summary for May 18, 2025
| Market | Buying Rate | Selling Rate |
|---|---|---|
| Black Market (Parallel) | ₦1,610/$1 | ₦1,625/$1 |
| CBN Official Rate | — | ₦1,599.55/$1 |
Note: Official rates are based on the last available data as the CBN does not publish weekend figures.
What to Expect in the Coming Days
Market analysts anticipate continued pressure on the Naira unless there is a significant improvement in dollar supply from oil exports, foreign direct investment, or a policy intervention by the Central Bank.
In the meantime, currency traders advise Nigerians to monitor exchange rates closely and transact through authorized dealers to avoid exploitation.
Stay with TJ News Nigeria for daily updates on foreign exchange rates, economic policies, and market trends that affect your wallet.
