Naira to Dollar Black Market Rate Nears Stability at ₦1,730

The Nigerian Naira continues to experience significant fluctuations in its exchange rate against the US Dollar in the parallel market, commonly referred to as the ‘Aboki’ market.

On November 30th, 2024, traders in major black market hubs like Lagos and Abuja reported a buying rate of approximately ₦1,724.125 and a selling rate of ₦1,730 for one US Dollar. This reflects a slight stabilization in the black market rates compared to previous days amidst broader economic discussions regarding Nigeria’s currency stability.

The Central Bank of Nigeria’s (CBN) official rate stands at ₦1,663.896 to the Dollar, showcasing a significant gap with the rates in the informal sector. This disparity continues to fuel the operations of the black market, where many Nigerians turn to currency exchange due to restrictions and inefficiencies perceived in the official market.

Local economic conditions, including high inflation rates speculated to be over 300% by some observers, continue to pressure the Naira’s value. The black market’s rates not only influence daily transactions but also serve as a barometer for the economic pressures the average Nigerian faces, often more telling than official statistics.

The government’s efforts to narrow the gap between these rates through policy reforms to stabilize the Naira have been met with mixed results. Economic reforms, including potential increases in foreign exchange liquidity, are closely watched by economic analysts and the general public, who hope to find measures to restore confidence in the national currency.