Dollar To Naira Black Market Exchange Rate Today 2024 - RHJCP (2024)

Today, we will look at the exchange rate for the US Dollar (USD) to Nigerian Naira (NGN) in the black market, also known as the parallel market or “Aboki fx.” Understanding this rate is important for many people in Nigeria, especially those who need foreign currency for personal or business purposes.

Current Exchange Rate in the Black Market

As of today, 24th July 2024, the exchange rate for one US Dollar (USD) to Nigerian Naira (NGN) in the black market is as follows:

• Buying Rate: N1580
• Selling Rate: N1590

This means that if you want to sell one US Dollar, you can get N1580. If you want to buy one US Dollar, you will need to pay N1590. These rates are provided by sources at the Bureau De Change (BDC) in Lagos, which is a major city in Nigeria.

What is the Black Market?

The black market, or parallel market, is an unofficial market where people can exchange currencies. Unlike the official exchange rates set by the Central Bank of Nigeria (CBN), the rates in the black market can be higher or lower. This market operates outside the government’s control, and people use it because it can sometimes offer better rates than banks or official channels.

Central Bank of Nigeria’s Stance on the Black Market

The Central Bank of Nigeria (CBN) does not recognize the black market for foreign exchange transactions. The CBN advises individuals and businesses to use official channels, like banks, for exchanging foreign currencies. However, many people still use the black market because it can be more convenient and sometimes offers better rates.

Official Dollar to Naira Exchange Rate by CBN

For comparison, here are the official rates for exchanging US Dollars to Nigerian Naira set by the Central Bank of Nigeria:

• Buying Rate: N1541
• Selling Rate: N1542

These rates are generally lower than the black market rates. This difference is why some people prefer to use the black market, even though it is not officially recognized.

Factors Affecting Exchange Rates

Several factors can influence the exchange rates between the Dollar and Naira:

Economic Conditions: The state of Nigeria’s economy can impact the value of the Naira. For example, high inflation or economic instability can weaken the Naira.

Government Policies: Decisions by the Nigerian government or the Central Bank can affect exchange rates. For instance, changes in interest rates or foreign exchange policies can impact the value of the Naira.

Demand and Supply: The demand for foreign currency versus the supply available can also affect exchange rates. When more people want to buy dollars than sell them, the price of dollars in Naira tends to increase.

Caution for Users

It’s important to note that the rates in the black market can vary from place to place and even from one dealer to another. The rates mentioned here are an average and may differ slightly depending on where you exchange your money. Always check the current rates before making any transactions.

Tinubu’s CNG Initiative and Its Impact on Fuel Prices

Recently, there has been significant news about fuel prices in Nigeria. The government announced that the high cost of Premium Motor Spirit (PMS), commonly known as petrol, ranging between ₦750 and ₦1000 per liter, will soon be a thing of the past. This change comes as part of the government’s initiative to promote the use of Compressed Natural Gas (CNG) as an alternative fuel for vehicles.

The initiative is being led by the Presidential Compressed Natural Gas Initiative, with Michael Oluwagbemi as the Project Director and CEO. During the Park to Park CNG Mobilization program held in Ojota Park, Lagos, Oluwagbemi announced that the government plans to introduce 30,000 CNG-powered vehicles within the next 90 days.

Details of the CNG Initiative

The CNG initiative will cost around ₦36 billion. This amount covers the distribution of 30,000 CNG conversion kits, which will be provided free of charge across the country. Each kit, along with the cost of converting a vehicle to use CNG, is valued at ₦1.2 million. This initiative aims to make CNG a more common and accessible fuel option, potentially lowering the cost of transportation and reducing reliance on petrol.

Benefits of Using CNG

Cost Savings: CNG is generally cheaper than petrol, which can help reduce transportation costs for individuals and businesses.

Environmental Benefits: CNG burns cleaner than petrol, producing fewer pollutants. This can help improve air quality and reduce the impact of transportation on the environment.

Economic Impact: By reducing the cost of fuel, the initiative could help lower the cost of goods and services, as transportation costs are a significant factor in pricing.

Conclusion

In summary, today’s exchange rate for the US Dollar to Nigerian Naira in the black market shows a higher rate compared to the official rate set by the Central Bank of Nigeria. While the black market offers more favorable rates, it’s essential to be aware of the risks and the lack of official recognition. Additionally, the Nigerian government’s initiative to promote CNG as an alternative fuel could significantly impact fuel prices and transportation costs in the country.

As always, when dealing with foreign exchange or considering new fuel options, it’s important to stay informed and consider all factors involved.