Naira Falls to ₦1,640/$ in Black Market – March 18, 2025

As of Tuesday, March 18, 2025, the Nigerian Naira remains highly volatile against the US Dollar in the informal foreign exchange market, commonly known as the “Aboki” or black market.

Currency dealers in key cities like Lagos, Abuja, and Kano reported that the dollar was trading between ₦1,620 and ₦1,640 today, reflecting a slight increase from earlier this month.

In Lagos’ Wuse Zone 4 market, a hub for bureau de change operators, traders were buying dollars at ₦1,620 and selling at ₦1,640. Similar trends were observed in Abuja and Kano, though minor regional variations persist due to local demand and supply dynamics. This rate continues to diverge significantly from the official exchange rate set by the Central Bank of Nigeria (CBN), which stood at approximately ₦1,550 per dollar on March 17, with the latest figure for March 18 yet to be released.

Economic analysts attribute the widening gap between the official and black market rates to persistent forex shortages, strong demand for dollars for imports, and waning confidence in the Naira’s stability. “The pressure on the Naira remains unrelenting,” said Chinedu Okeke, a Lagos-based forex trader. “With fluctuating oil prices and weak foreign investment inflows, the black market remains the primary source for many seeking dollars.”

The ongoing volatility comes as the Nigerian government strives to achieve ambitious economic targets, including reducing inflation from over 34% to 15% by the end of 2025. However, the heavy reliance on the parallel market for forex transactions highlights the challenges posed by the country’s dual exchange rate system. The CBN has consistently warned against using the black market, urging individuals and businesses to go through official banking channels. However, limited dollar availability through formal means drives many toward the informal sector.

Today’s rates align with recent trends, as the Naira struggles against major currencies in the parallel market. Platforms like Aboki Forex and NgnRates, which monitor these unofficial rates, have become essential tools for Nigerians navigating the forex landscape. However, traders caution that rates fluctuate throughout the day based on market sentiment and dollar availability.

As the day unfolds, market watchers will be keen to see if the CBN implements new measures to stabilize the Naira or if the black market continues to shape Nigeria’s forex reality. The Aboki market remains a critical, though unregulated, alternative for many amid ongoing economic uncertainty.