Nigeria’s currency appears to be showing resilience on the black market, even as the U.S. dollar continues to soften across global markets. Analysts note that this dual development could be a breath of fresh air for the domestic foreign exchange landscape.
Naira Holds Ground in Parallel Market
While the dollar globally is slipping, the naira remains relatively stable in Nigeria’s black (parallel) market. Although precise figures for today’s rate are not yet confirmed, recent trends indicate that the naira is holding steady. On August 31, user-reported data from NgnRates cited black market buy and sell rates at ₦1,535–₦1,550 per dollar .
Over the past months, the naira has generally shown improvement in the parallel market. For instance:
- In the first half of 2025, the naira appreciated by ₦90 (about 5.7%) on the black market, aided by stronger dollar inflows .
- Mid-July saw the naira firm at ₦1,545 per dollar, narrowing the gap between official and parallel rates thanks to continued FX reforms .
U.S. Dollar Weakens in Global Markets
The global softening of the U.S. dollar plays into Nigeria’s current FX dynamics. As of early September, the greenback hovered at multi-year lows, pushed down by dovish signals from the Federal Reserve and anticipated policy shifts in the U.S. .
In Nigeria, this trend aligns with declines in the dollar index—though real-time rates require official confirmation.
Why This Matters
- Reduced speculative pressure: With the dollar weakening globally, speculative demand for dollars in Nigeria could ease, allowing for greater naira stability.
- Narrower FX gap: Improved convergence between black market and official rates signals confidence in Nigeria’s ongoing FX policy reforms.
- Positive signals for investors and businesses: A more stable naira, even in informal markets, supports importers, exporters, and small businesses in planning and operations.
Summary Table
| Context | Naira Status (Black Market) | U.S. Dollar Status (Global Markets) |
| Current Trend | Stable at ₦1,535–₦1,550 per $ | Weakest levels in years; easing demand |
| Key Drivers | Domestic FX inflows, policy reforms | Dovish U.S. interest rate outlook |
| Implications | Lower FX arbitrage and hedging costs | Opportunity for further naira support |
