Dollar to Naira Exchange Rate Today (Black Market)
It’s no longer news that the Nigerian Naira (NGN) has depreciated against the US dollar (USD) over the years. And the free fall experienced between 2015 and 2016 is undoubtedly the worst since the adoption of the naira on January 1, 1973.
For some time now, there has been a huge disparity between the CBN rates and the parallel market (black market) prices of the dollar. Because the black market prices are what people reckon with when buying and selling dollars, most Nigerians are more interested in them, and not in the CBN official rates, which are not obatinable by most Nigerians.
If you’re looking for the dollar to naira exchange rate today at the black market, you’re just on the right page. Below is the table showing the present buying and selling price of the US dollar against the naira. The table is updated daily, so the figures are always correct.
Also Read: Euro to Naira Exchange Rate Today
Naira to dollar exchange rate today
The two tables above display the current value of the USD in naira. To convert the naira back to the dollar, simply divide 1 by the current USD to naira rate. For example, if the USD presently sells for N300, dividing 1 by 300 would give you the dollar price of the naira. So, if USD to NGN is 300, NGN to USD would be 1/300 (0.00333).
In case you’re wondering why the naira continues to plunge further down the abyss of devaluation, we’ll now look at some of the reasons for the sad development, which isn’t likely to end anytime soon unless the Nigerian government acts fast.
USD to naira exchange rate today @ interbank market
The table below shows the official rate of the US dollar to the naira at the international market. Note that this price is not the same as that obtainable at the black market. The table below is updated daily.
Dollar to naira exchange rate: Why the naira keeps falling
While there are more than countable reasons for the free fall of the Nigerian naira against the US dollar, economists have repeatedly cited these three as the most important and direct causes.
1. Over-dependence on oil
Before the discovery of oil, Nigeria’s economy was nourished by proceeds from agricultural exports, manufacturing, and other highly productive and lucrative income channels. However, after the discovery of oil, the country’s leaders quickly abandoned all other income streams and focused only on oil revenue.
While it’s true that oil was far more valuable and lucrative than most other resources that fetched income for Nigeria, depending solely on oil is one of the biggest mistakes ever made in the country’s history. That single step placed the country’s economy in its entirety at the mercy of the global oil market. When oil sells for high prices, Nigeria smiles; when oil prices drop, the country grimaces.
So, it’s not surprising that the naira’s value started plummeting when oil prices went down drastically over the last 20 months or thereabout. The negative development, which came of the heels of the discovery of shale oil by the US, has also dealt huge blows to the economy of many other oil exporting countries. But it seems Nigeria was the most hit victim due to other reasons we’ll mention below.
2. Depletion of foreign reserves
Ordinarily, whenever there is an economic crisis, the only shield a country has is her foreign reserves. So, when the oil crisis hit, most oil producing countries has robust foreign reserves to fall back on. Algeria, for example, at the time had about $150 billion in foreign reserves, and that was enough to serve as hedge against the effect of the oil crisis.
But unfortunately for Nigeria, there was very little left as foreign reserve. The country did not take advantage of the period of oil boom and so had to suffer seriously when oil prices crashed.
Now, the big question is, why is Nigeria’s foreign reserve so badly depleted. The answers are many: massive looting by corrupt politicians over the years, huge running costs (e.g. jumbo pay to lawmakers), and lack of foresight by the government, and lots more.
3. Heavy dependence on imported resources
When a country’s citizens prefer to buy everything from abroad, even when most can be locally made, the country’s currency is bound to suffer over time. That’s one of the main problems the naira is facing at the moment. Nigerians are sticklers for anything foreign, and locally made goods are looked down upon. This, coupled with lack of government policies that encourage local production and stop importation of goods that can be locally made, is one of the factors responsible for the downfall of the naira.
But the dull nature of Nigeria’s manufacturing sector is to be blamed on the government, who has failed to provide an enabling environment for local manufacturing companies to thrive. The country’s epileptic power supply problem alone is enough hindrance to the success of most players in the sector. And it’s not surprising that lots of manufacturing firms have closed down and many others have left the shores of Nigeria for countries with better climates.
Dollar to Naira Exchange Rate History
- Here is an outlined account of how the naira had fared against the US dollar since it’s adoption on January 1, 1973.
- Between 1973 and 1982, the naira was stronger than the US dollar exchanging for between 0.61 and 0.67 within the period
- Between 1983 and 1985, the naira weakened gradually against the dollar, eventually exchanging for one dollar. In other words, it was equal in strength to the dollar at the time.
- 1986: one dollar sold for 2.02 NGN (3.90 NGN @ black market)
- 1987: one dollar sold for 4.02 NGN
- 1988: one dollar sold for 4.54 NGN
- 1989 – 1990: one dollar sole for 7.39 NGN
- 1992: one dollar sold for 9.91 NGN
- 1993: one dollar sold for 17.30 NGN
- 1994: one dollar sold for 22.33 NGN
- 1995 – 1999: one dollar sold for 21.89 NGN
- 2000: one dollar sold for 85.98 NGN
- 2001: one dollar sold for 99 – 106 NGN
- 2002: one dollar sold for 109 – 113 NGN
- 2003: one dollar sold for 114 – 127 NGN
- 2004: one dollar sold for 127 – 130 NGN
- 2005: one dollar sold for 132 – 136 NGN
- 2006: one dollar sold for 128.50 – 131.80 NGN
- 2007: one dollar sold for 120 – 125 NGN
- 2008: one dollar sold for 115.50 – 120 NGN
- 2009: one dollar sold for 145 – 171 NGN
- 2010: one dollar sold for 148.21 – 154.8 NGN
- 2011: one dollar sold for 151.05 t 165.1 NGN
- 2012: one dollar sold for 155.09 – 161.5 NGN
- 2013: one dollar sold for 153.21 – 162.9 NGN
- 2014: one dollar sold for 170 – 199 NGN
- 2015: one dollar sold for 199 – 300 NGN
- 2016: one dollar sold for 300 – 489 NGN