As at today 28th May 2025, Nigeria’s foreign exchange market remains under intense pressure as the Naira continues to depreciate against the US Dollar (USD), British Pound (GBP), and Euro (EUR). While major ports saw a surge in refined product discharges yesterday including crude oil deliveries to the Dangote Refinery the currency market has shown little relief.
Today’s rates reflect the widening gap between official channels and the parallel market, where most Nigerians now source forex for immediate transactions.
Official Exchange Rates: Lower, But Less Accessible
The official exchange rates, released by the Central Bank of Nigeria (CBN) remain consistently lower than parallel market rates. However, despite offering a more affordable exchange rate, official channels often delay access to dollars due to rationing and documentation bottlenecks.
- USD to NGN: ₦1,586.41
(Up by 0.20%) - GBP to NGN: ₦2,173.30
- EUR to NGN: ₦1,850.63
These lower official rates are used for imports, school fees, medical bills, and other verified financial obligations but only for those who can access them through commercial banks or fintech platforms like Wise and Western Union.
Parallel Market Rates: Higher and Widely Used
In contrast, the parallel market also known as the black market continues to serve most Nigerians and businesses who cannot afford to wait. Rates here are significantly higher due to overwhelming demand, cash preference, and ease of access.
- USD to NGN: ₦1,605.00 (buying) – ₦1,625.00 (selling)
(Spiking to ₦1,675.00 for bulk cash in certain locations) - GBP to NGN: ₦2,120.00 – ₦2,170.00
(With quotes reaching ₦2,230.00) - EUR to NGN: ₦1,780.00 – ₦1,820.00
(Peaking at ₦1,850.00 in certain locations)
Although expensive, the parallel market offers faster access, especially for urgent international transactions. Traders on urban centres caution against online scams and recommend in-person verification to avoid fraud.
Context: Oil Imports Surge, But FX Remains Tight
Despite recent activity at Nigeria’s coastal jetties, where tankers like Union Peace, St. Amrah, and Alfred Temile discharged massive quantities of crude and LPG, foreign reserves have not strengthened enough to impact the Naira positively.
- Dangote Refinery alone received 273,454 MT of crude oil yesterday.
- Matrix Pride and ST Walga also prepared to discharge PMS at Warri and Port Harcourt, ensuring inland fuel availability.
However, this flurry of imports has yet to ease Nigeria’s forex scarcity, especially as the country still heavily relies on imported refined products and external services, creating sustained pressure on the Naira.
What This Means for Nigerians
- Importers using official windows save on exchange rates but often face weeks-long delays.
- Travellers, students, and SMEs prefer the parallel market for speed even though they pay more.
- Fuel marketers, especially those receiving cargo at Nigerian ports, often factor in black-market rates when setting depot and pump prices.
This dual-rate system continues to strain Nigeria’s downstream petroleum sector, where every shipment and product payment links back to forex availability.
Outlook: Analysts Warn of ₦2,000 Per Dollar if Trends Persist
Economists warn that if Nigeria fails to attract new foreign investment or boost non-oil exports, the USD/NGN rate could approach ₦2,000. While the CBN has increased intervention in the official window, such measures have yet to ease the demand imbalance seen daily in the parallel market.
As of May 28, 2025, Nigeria’s exchange rate reality tells two stories: lower official rates that few can access, and higher black-market rates that most depend on. The recent surge in fuel imports and refinery activities has not closed the forex gap.
Until systemic reforms improve forex inflows and stabilise the Naira, Nigerians will continue navigating two exchange rate systems each with its own risks and trade-offs.
FX Snapshot – May 28, 2025
| Currency | Official Rate (CBN) | Parallel Market (Avg) |
|---|---|---|
| USD | ₦1,586.41 | ₦1,625.00 |
| GBP | ₦2,173.30 | ₦2,170.00 |
| EUR | ₦1,850.63 | ₦1,820.00 |
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