As at today Thursday 27th May 2025, the exchange rates of the Naira is experiencing pressure across both official and parallel markets, reflecting deepening demand for foreign currency and persistent structural imbalances. As marketers slash fuel prices at depots to gain market share, forex volatility continues to strain Nigeria’s economic stability.
Official Market: Slight Dip in Dollar Value
According to the Central Bank of Nigeria (CBN) via the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official exchange rates as of May 26, 2025 are:
- USD/NGN: ₦1,583.35 ▼ -0.41% (from ₦1,589.80)
- GBP/NGN: ₦2,164.72
- EUR/NGN: ₦1,824.75
These rates reflect volume-weighted averages within regulated banking transactions. The CBN recently intervened with a $197.71 million injection to stabilise the Naira, though the impact has proved modest amid high forex demand.
Parallel Market: Naira Slides as Dollar Demand Surges
In the black market, the Naira weakened further due to persistent scarcity and mounting demand from fuel importers, students, and travellers. As of May 24, 2025:
- USD/NGN: ₦1,605.00 (buy) – ₦1,625.00 (sell)
- GBP/NGN: ₦2,100.00 (buy) – ₦2,160.00 (sell)
- EUR/NGN: ₦1,790.00 (buy) – ₦1,830.00 (sell)
These parallel rates vary daily, shaped by informal market dynamics in hubs like Lagos and Abuja. Rising import costs especially for petroleum products have increased dollar demand in recent days.
Market Context: Fuel Price Cuts Drive Dollar Demand
Yesterday’s sharp drop in depot petrol prices, particularly from Dangote, Nipco, MRS, and others, triggered increased fuel evacuation and payments pegged to black market rates. For example:
- PMS dropped to ₦827 at Dangote and ₦830 at MRS Tincan
- AGO also fell at key terminals, with Nipco dropping from ₦940 to ₦915
This intensified price war means more marketers are sourcing dollars to maintain supply logistics putting further pressure on the Naira.
Economic and Structural Pressures
Analysts warn the widening gap between official and street rates reflects a deep-rooted currency crisis. Nigeria’s reliance on imported fuel, combined with volatile crude oil revenue, continues to undermine forex stability.
“The Naira will struggle to gain ground unless Nigeria strengthens its local refining and reduces dollar-backed fuel importation,” said a downstream analyst.
Efforts by the CBN to harmonise rates through past bureaux de change reforms have had limited long-term success, as black market transactions remain dominant for SMEs and informal traders.
Outlook: Stability Hinges on Domestic Energy Policy
Looking ahead, economic forecasts suggest the Naira may stabilise near current levels if fuel marketers sustain domestic supply using local refining outputs particularly as Dangote and modular refineries ramp up operations. However, major appreciation remains unlikely without comprehensive structural reforms.
The CBN’s forex rationing and restrictions on select imports aim to curb pressure, but Nigeria’s dependence on crude exports and forex for basic imports continues to expose the Naira to global shocks.
Summary of Today’s Rates – May 27, 2025
| Currency | Official Rate | Parallel Buy | Parallel Sell |
|---|---|---|---|
| USD | ₦1,583.35 | ₦1,605.00 | ₦1,625.00 |
| GBP | ₦2,164.72 | ₦2,100.00 | ₦2,160.00 |
| EUR | ₦1,824.75 | ₦1,790.00 | ₦1,830.00 |
As of May 27, 2025, the Naira’s divergence between regulated and informal markets reflects a currency under siege from domestic policy gaps and global headwinds. While depot fuel price cuts offer short-term relief, they also drive demand for foreign exchange, underscoring the urgent need for local refining capacity and macroeconomic stability.
