Nigerian Naira continues to face challenges in the foreign exchange market, especially in the parallel (black market) segment. As of May 19, 2025, the exchange rate has hit a new benchmark.
What’s the USD to Naira Rate Today?
If you’re planning to exchange dollars on the black market today, here’s what you should expect:
Buy Rate: ₦1,630 per $1
Sell Rate: ₦1,625 per $1
These figures are based on the Aboki FX-style rates from local currency dealers. Of course, rates can vary depending on location and the individual bureau de change.
Why Is the Naira Losing Value?
There are several reasons behind the ongoing depreciation of the Naira in the parallel market:
1. Inflation – Nigeria’s inflation rate remains high, weakening the purchasing power of the Naira.
2. Low Foreign Reserves – The Central Bank of Nigeria (CBN) has limited reserves to support the official exchange rate.
3. Policy Shifts – In 2023, the CBN removed the currency peg, allowing the Naira to float, which caused an immediate 23% drop in value.
4. Market Speculation – Currency speculation continues to put pressure on the Naira in the unofficial market.
Historical Snapshot: How We Got Here
Let’s take a quick look at how things have evolved:
June 2023: Naira drops to ₦600 per $1 after floating begins.
July 2024: The rate reaches ₦1,600 per $1.
Today (May 2025): We’re now at ₦1,630 per $1 – a clear sign of continuing volatility.
How Does This Affect You?
If you’re wondering what this means for everyday life or business, here’s a quick breakdown:
Importers: Your cost of goods just went up. Many businesses will pass this on to consumers.
Students Abroad: Expect to pay more for tuition and living expenses as converting Naira becomes more expensive.
Final Thoughts: Stay Informed, Stay Ahead
The black market exchange rate is a vital economic indicator in Nigeria, especially for individuals and businesses who rely on foreign currency. While it’s uncertain how the CBN or global market trends will influence the Naira next, staying updated is your best defense.
Be sure to check reliable financial platforms regularly – even a small shift in the rate can significantly impact your finances.
