The Nigerian Naira continues its volatile trajectory in the foreign exchange market as of today, Monday, May 19, 2025, with traders, importers, and economic analysts closely monitoring the U.S. Dollar to Naira exchange rate. The disparity between the official Central Bank of Nigeria (CBN) rate and the parallel (black) market rate remains a key concern for stakeholders.
This comprehensive report provides a breakdown of today’s exchange rates, factors influencing the currency’s performance, recent policy developments, market reactions, and what to expect in the days ahead. Whether you’re a business owner, investor, or traveler, staying updated with accurate and timely exchange rate data is essential in navigating Nigeria’s complex forex environment.
✅ Official CBN Exchange Rate Today – May 19, 2025
As of this morning, the Central Bank of Nigeria (CBN) has pegged the official exchange rate at:
- ₦1,604.22 per $1 (official rate on the CBN FX platform)
This rate is primarily applicable for government transactions, authorized dealers, and certain imports covered under the official window.
✅ Black Market (Aboki FX) Exchange Rate – May 19, 2025
In contrast, the dollar is trading much higher in the black market, where demand is typically higher due to limited access to official forex:
- ₦1,640 – ₦1,645 per $1 (buy/sell)
This rate varies slightly depending on location, with Lagos, Abuja, Port Harcourt, Kano, and Onitsha showing minor variations.
📌 Breakdown of Black Market Rates Across Cities:
| City | Buy Rate (₦) | Sell Rate (₦) |
|---|---|---|
| Lagos | 1,640 | 1,645 |
| Abuja | 1,645 | 1,650 |
| Kano | 1,644 | 1,645 |
| Port Harcourt | 1,645 | 1,655 |
| Onitsha | 1,640 | 1,650 |
Note: These rates are unofficial and subject to change based on daily market fluctuations.
💹 Bureau De Change (BDC) Rate
The Bureau De Change operators, though limited by CBN’s licensing restrictions, still offer competitive rates:
- ₦1,645 to ₦1,655 per $1
Most BDCs base their pricing on black market demand and FX availability.
Also Read : Dollar to Naira Exchange Rate Today, Sunday, May 18, 2025: Black Market and Official Rates
🔍 What Is Fueling the Dollar to Naira Fluctuations?
Several macroeconomic and policy-based factors are influencing the Naira’s current performance:
1. Dollar Scarcity
Foreign exchange reserves remain under pressure due to low oil revenue inflows and rising import bills. With reduced FX supply from the CBN, many businesses and individuals resort to the black market, driving up demand.
2. Inflationary Pressures
Nigeria’s inflation hit a record 34.7% in April 2025, weakening consumer purchasing power and further reducing Naira value.
3. External Debt Repayments
The Federal Government continues to meet its international debt obligations, draining forex reserves in the process.
4. Import Dependence
Nigeria still heavily depends on imported goods – from food to industrial machinery – increasing demand for dollars.
🏦 Central Bank Intervention: Recent Policy Measures
The CBN has taken steps to curb volatility in the FX market, including:
- FX Unification: The apex bank maintains a unified exchange rate regime to curb arbitrage opportunities.
- Restriction on BDC Licensing: Only verified and compliant BDC operators are allowed to trade, cutting out thousands of unauthorized dealers.
- Inflow Incentives: The RT200 FX Programme continues to encourage exporters to repatriate foreign currency earnings.
- Digital FX Monitoring: Tightened regulations on cross-border FX transactions via banks and fintechs.
Despite these efforts, market watchers argue that more transparency and sustained supply are needed to build confidence.
📉 Impact on Businesses and Consumers
Importers:
Many importers face difficulty sourcing dollars for raw materials, leading to price hikes in manufacturing, retail, and services.
SMEs:
Small businesses reliant on FX for product sourcing are forced to increase prices or suspend operations.
Nigerians Studying Abroad:
International tuition and living expenses are skyrocketing, with families exchanging at black market rates.
Travelers:
Airfare and travel logistics are becoming unaffordable for many Nigerians due to high exchange costs.
📊 Historical Comparison: How Has the Naira Fared?
| Date | Official Rate (₦) | Black Market Rate (₦) |
|---|---|---|
| Jan 1, 2025 | 1050 | 1,480 |
| Mar 1, 2025 | 1,215 | 1,545 |
| Apr 15, 2025 | 1,425 | 1,570 |
| May 19, 2025 | 1,545 | 1,645 |
This table highlights a consistent weakening of the Naira across both markets since the start of the year.
🔮 Forecast: What Lies Ahead for the Naira?
Economic analysts suggest that without substantial forex inflows from oil exports, foreign direct investment (FDI), and remittances, the Naira may continue to face downward pressure.
However, optimistic projections are tied to the following:
- Stabilization of crude oil production to over 1.6 million barrels/day
- Foreign investment from diaspora bonds and Eurobond issuances
- CBN’s success in FX market regulation enforcement
The upcoming half-year financial reports from international credit agencies may also impact investor sentiment.
💬 Expert Opinions
Dr. Tunde Ojo, an economist at the University of Lagos, noted:
“Until Nigeria reduces its import dependence and increases non-oil exports, the exchange rate will remain vulnerable. Policymakers must ensure credible fiscal and monetary frameworks to restore investor confidence.”
🧾 What Can You Do as a Consumer?
- Monitor rates daily to make informed financial decisions
- Utilize official channels when possible to avoid inflated black market rates
- Explore digital remittance options for better FX pricing
- Delay non-essential international payments if feasible, until the rate stabilizes
Final Thoughts
The Naira’s current exchange rate reflects deeper structural issues in Nigeria’s economy. While the Central Bank has introduced measures to stabilize the market, long-term solutions require coordinated fiscal policies, diversification of exports, and the rebuilding of public trust.
As of Monday, May 19, 2025, the Dollar to Naira exchange rate remains a central topic for every Nigerian household and business, underscoring the need for timely updates and reliable information.
Stay with TJ News Nigeria for daily forex updates, economic analysis, and policy reviews affecting the Nigerian economy.
Additional Reporting: Omajemite Don
Editor: TJ News Nigeria Team
