The black market, or parallel market, serves as an unofficial platform for trading foreign currencies at rates distinct from the Central Bank of Nigeria’s (CBN) official exchange rate.

It is often utilized by individuals and businesses facing limitations or restrictions in accessing the official market due to scarcity. The exchange rate on the black market for the US dollar to the Nigerian naira varies daily, influenced by supply and demand dynamics, as well as factors like inflation, political instability, and economic policies.

How much is a dollar to naira today in the black market?

Typically exceeding the official rate, the black market rate signifies a weaker naira. As of February 5, 2024, the black market exchange rate is

• Buying rate: ₦1,425.00 per US dollar
• Selling rate: ₦1,455.00 per US dollar

In comparison, the official exchange rate stands at ₦886.89 per US dollar. The disparity between these rates, known as the parallel market premium, reflects the divergence between official and unofficial markets and serves as an indicator of confidence in the naira and CBN policies. Note that these rates may slightly vary depending on location and dealer.