June 17, 2025 BY parrotblogpa.com.ng
The Nigerian Naira continues its turbulent ride in the foreign exchange market, hitting a new low of ₦1,600 per US dollar in the parallel (black) market today. This development has sparked growing concerns among citizens, business owners, and economic analysts who are watching the naira’s performance closely amidst Nigeria’s broader financial struggles.
What’s Happening?
As of June 17, 2025, black-market traders are selling one US dollar for as high as ₦1,600, while buying it at around ₦1,590. This is a significant spread compared to the official Central Bank of Nigeria (CBN) rate, which sits at approximately ₦1,549.35/$.
This widening gap between the official and black-market rates is becoming a worrying trend for individuals and businesses who depend on foreign exchange for survival—especially those in the import, travel, education, and health sectors.
Why Is the Naira Falling?
1. Forex Scarcity
The primary reason for the spike in the black-market rate is the lack of access to forex through official channels. Banks and licensed Bureau De Change operators often run out of dollar supply, forcing people to turn to the parallel market.
2. Increased Demand
Importers, students studying abroad, travelers, and businesses all need foreign currency. With limited availability in the official market, the demand shifts to the black market—causing prices to surge.
3. Economic Pressure
Nigeria is grappling with high inflation, falling oil revenues, and rising external debt. All these factors strain the country’s foreign reserves and weaken the naira.
4. Policy Uncertainty
While the CBN has initiated reforms such as automating forex trades and injecting dollars into the market, these measures have not fully bridged the supply-demand gap.
How Does This Affect the Average Nigerian?
The impact of the naira’s fall is already being felt across the country:
Rising Cost of Goods: Most goods in Nigerian markets are either imported or influenced by dollar prices. This means basic items like fuel, medicine, electronics, and food continue to rise in cost.
Business Disruptions: Small and medium-sized businesses, especially those relying on imported raw materials, are finding it difficult to operate under current rates.
Reduced Purchasing Power: With the naira weakening, the average Nigerian can now buy less with the same amount of money.
Inflationary Pressure: As dollar rates rise, inflation spikes further, affecting salaries, savings, and the general standard of living.
What Is the Government Doing About It?
The Central Bank of Nigeria has continued efforts to stabilize the currency by:
Selling forex directly to Bureau De Change operators.
Promoting transparency in FX dealings through digital platforms.
Encouraging diaspora remittances via formal channels.
Partnering with investors to boost confidence in the economy.
Experts believe that while these reforms are in the right direction, their impact may not be felt immediately. Stabilizing the naira will take consistent policies, restored investor confidence, and increased exports.
What Should You Do?
Here are some practical steps you can take in light of the current situation:
Track FX Rates Daily: If you need dollars for education, travel, or business, keep a close eye on forex trends.
Cut Unnecessary Imports: Support local alternatives where possible to reduce dollar dependency.
Diversify Income: Consider remote work, freelancing, or online business in foreign currencies.
Plan Purchases Wisely: If you’re importing, bulk buy or lock in rates early when possible.
CONCLUSION
The naira’s slide to ₦1,600 per dollar on the black market is a wake-up call for both policymakers and everyday Nigerians. While global and internal economic factors continue to challenge the currency, the hope remains that consistent government action and increased forex inflow will help the naira recover over time.
Until then, Nigerians must adapt, stay informed, and manage their finances wisely in these trying times.
Have you been affected by the rising exchange rate? Share your thoughts in the comments!
