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The value of the Nigerian naira has remained a critical topic in the country’s economic and financial discourse, as the currency continues to experience fluctuations across different exchange channels. As of Monday, June 23, 2025, Nigerians are witnessing varying rates for the dollar in the official and parallel markets, reflecting the persistent volatility in the foreign exchange market.
TJ News Nigeria reports that the disparity between the official and black market exchange rates has widened slightly over recent days, with market watchers expressing concerns about the potential impact on inflation, import costs, and the general cost of living.
In this report, we provide a detailed overview of the Dollar to Naira exchange rate today, explain the reasons behind the disparity between official and parallel rates, and explore the possible implications for individuals, businesses, and the Nigerian economy at large.
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Also Read : Dollar to Naira Exchange Rate Today, Friday, June 20, 2025
Official CBN Dollar to Naira Exchange Rate Today
The official exchange rate of the US dollar to the Nigerian naira at the Central Bank of Nigeria (CBN) is approximately:
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- ₦1,550 per $1 (June 23, 2025)
This figure represents the rate used by banks and licensed Bureau De Change (BDC) operators participating in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In recent weeks, the CBN has made efforts to maintain a relative sense of stability within the official window, although the naira has struggled to hold ground due to high demand for foreign exchange by importers, students, travelers, and international investors.
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According to data obtained by TJ News Nigeria, the official rate has traded within the band of ₦1,545 to ₦1,557 per dollar in the past six trading days, signaling some measure of control by monetary authorities despite external pressures.
Black Market Dollar to Naira Rate Today — June 23, 2025
In the black market (parallel market), the Dollar to Naira exchange rate today stands at:
- ₦1,610 per $1
The parallel market, often used by individuals unable to access official dollar allocations, typically offers higher rates due to increased demand and limited supply. The ₦1,610 rate being quoted in Lagos and other major cities represents a ₦60 premium over the official rate.
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While the official rate appears stable, the black-market rate has fluctuated between ₦1,605 and ₦1,615 over the past few days, reflecting ongoing demand pressures in the informal currency market.
TJ News Nigeria gathered that foreign exchange scarcity in the official market continues to drive many Nigerians to the black market, further widening the gap between official and unofficial exchange rates.
Summary Table — Dollar to Naira Exchange Rate Today
| Exchange Channel | Rate (₦/USD) |
|---|---|
| Official (CBN) | ₦1,550 |
| Black Market | ₦1,610 |
Factors Affecting the Dollar to Naira Exchange Rate
Several economic and policy-related factors influence the exchange rate dynamics in Nigeria:
1. Foreign Exchange Reserves
Nigeria’s foreign exchange reserves play a major role in stabilizing the naira. Lower reserves reduce the CBN’s ability to defend the local currency in the forex market, leading to increased depreciation pressure.
2. Global Oil Prices
As Nigeria is heavily reliant on crude oil exports for its foreign exchange earnings, fluctuations in global oil prices directly impact the availability of dollars in the Nigerian economy.
3. External Debt Repayments
Regular servicing of Nigeria’s external debt obligations requires significant outflows of foreign exchange, further constraining liquidity and contributing to naira weakness.
4. Inflation Rates
High domestic inflation erodes the purchasing power of the naira, making foreign currencies like the US dollar more attractive to investors and individuals alike.
5. Monetary Policy Actions
Decisions by the Monetary Policy Committee (MPC) of the CBN regarding interest rates, forex interventions, and exchange rate management strategies all influence the strength or weakness of the naira.
Impact of Exchange Rate on Nigerians
The fluctuating exchange rates in Nigeria have direct and indirect impacts on citizens, businesses, and the overall economy.
1. Increased Cost of Imported Goods
Since many consumer goods and raw materials used by manufacturers are imported, rising exchange rates translate into higher prices for everyday items, thereby contributing to inflationary pressures in the economy.
2. Rising School Fees and Medical Expenses Abroad
Nigerians studying or seeking medical attention abroad are among the groups most affected by rising dollar rates, as foreign institutions and service providers bill in dollars or other hard currencies.
3. Increased Cost of Foreign Travel
Airlines, visa fees, and international bookings are all priced in foreign currencies, meaning Nigerians traveling abroad need to pay more in naira terms when converting funds.
4. Pressure on Small and Medium-Sized Enterprises (SMEs)
SMEs involved in international trade or businesses that rely on imported inputs often struggle with forex scarcity, higher costs, and unpredictable pricing structures, making planning and budgeting difficult.
What the Nigerian Government Is Doing
In response to the forex challenges, the Nigerian government and the Central Bank of Nigeria have taken several measures to stabilize the naira:
- CBN Forex Reforms: Continued efforts to unify multiple exchange rates and allow market forces to determine rates through the NAFEM window.
- Restrictions on Importation: The government maintains import restrictions on certain goods to reduce forex demand.
- Engagement with International Partners: Nigeria continues to explore foreign direct investment (FDI) inflows and credit facilities from international financial institutions to boost reserves.
- Boosting Local Production: Policies promoting local manufacturing and agriculture are aimed at reducing the importation of goods that consume significant foreign exchange.
However, despite these initiatives, market analysts believe that more fundamental reforms and consistent implementation are needed to bridge the persistent gap between official and black-market exchange rates.
Recent Dollar to Naira Exchange Rate Trends
Over the past three months, the naira has experienced the following key movements:
- March 2025: ₦1,492 — ₦1,505 per USD (official)
- April 2025: ₦1,515 — ₦1,550 per USD (official)
- May 2025: Touched a high of ₦1,607.05 per USD (official)
- June 2025 (so far): Averaging around ₦1,550 at official channels, with the black market consistently above ₦1,600.
Outlook for the Naira in Coming Weeks
Financial analysts expect continued pressure on the naira unless Nigeria can significantly boost foreign exchange supply through:
- Increased crude oil exports
- Improved foreign investor confidence
- Implementation of robust monetary and fiscal reforms
Short-term volatility is likely, especially with external debt repayments and global economic uncertainties contributing to speculative activities in the forex market.
Advice for Nigerians Handling Forex Transactions
TJ News Nigeria recommends the following for individuals dealing with forex:
- Use Authorized Dealers: Always purchase foreign currency from licensed banks or Bureau De Change operators.
- Plan Ahead: For school fees, medical expenses, or travel plans, start the process early to avoid last-minute costs associated with black-market rates.
- Be Wary of Scams: Avoid engaging with unlicensed agents or suspicious online platforms promising unrealistic rates.
📎 Conclusion
As Nigeria continues to navigate its forex challenges, staying informed about the Dollar to Naira exchange rate today and understanding its broader implications is crucial for making sound financial decisions. The gap between the official and black market rates highlights the persistent pressure on the naira, reflecting deeper structural issues within the economy.
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