Naira on a Free Fall: US $ now ₦385, £ now ₦505 in Black Market

The NairaThe Nigerian Naira is on a free fall in the parallel market, while official interbank rates remain stable.

According to Vanguard, the demand for dollars to pay for Chinese goods is part of the reason for the latest decline.

According to a BDC operator who spoke on condition of anonymity, “You know China had been on its one month annual holidays. But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays.

They had made 30% down payment to order the goods and they now have to pay the 70% balance otherwise they will lose the 30%.

That is why they are desperate and ready to buy dollars at any rate. Meanwhile supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon”.

The newspaper traces the beginning of the rapid fall of the Nigerian Naira to when the Central Bank of Nigeria stopped the weekly sale to Bureau de Changes with dollars on January 12th, 2016.

The USD rate was 265 Naira then. Now it’s ₦385, 60 Naira down from ₦325 last week, and ₦505 to the British Pound, 65 Naira down from ₦440 last week.

The interbank rates remain the same at ₦199.34 for Dollars.

With school fees and medical bills suspended from the list of official forex last week, the demand on the dollars and pounds in the parallel market is undoubtedly set to increase.

Source: Vanguard

39 Comments on Naira on a Free Fall: US $ now ₦385, £ now ₦505 in Black Market
  • Gerry February 18, 2016 at 8:46 am

    God is on the throne! The untold hardship befalling this nation is scary. Companies have started downsizing

  • Expat February 18, 2016 at 8:58 am

    Oh how I miss earning in pound sterling! Uk’s calling

    • Sisi February 18, 2016 at 2:06 pm

      Like I can seriously feel your pain. I really miss it too.

    • Cocolette February 18, 2016 at 3:43 pm

      xpat…please can i come with you? I just want to sit on the floor and weep. Worst thing is i don’t understand all the economics and forex and central bank and foreign reserves talk, i just know that the money i take to the market barely buys the basics these days ???

    • ATL’s finest February 18, 2016 at 4:08 pm

      Hahhaha lmao! But dammmmm how I wish I know anyone going to Nigeria like ASAP & give them $$$ by hand cuz banks are extremely crazy & OLE BURUKU people.

      • Jaygirl February 18, 2016 at 7:36 pm

        My dear I felt the same initially but the naira is losing value in the Nigerian market as well. If this situation continues, that money we send home will only be enough to buy sweets and peanuts but I pray our country doesn’t get to that stage. That said though….this might be a good time to acquire assets.

  • OgeAdiro February 18, 2016 at 9:18 am

    “Ala adighi mma wu uru ndi nze.” They might want to call on foreign experts for help, because it looks like they’re out of their depths.

  • keeks February 18, 2016 at 9:30 am

    THIS IS CRAZYYYY!!!! WHATS HAPPENING TO THIS ECONOMY?? N505 to a pound?? all plans i had this year are just on hold. whats our government doing? is it until a dollar is to a N1000? i get reducing d value NGN won’t help in the long run but how do we function? this is what over dependency on Oil and extreme importation has caused for us, the previous administration’s choices have led us down this path!!! A lot of families are adjusting seriously, the middle and low class will feel the brunt of this the most, upper class will just have to start drinking eva water compared to avion! Lord Help us.

  • Prince February 18, 2016 at 9:37 am

    Father, we need your intervention. I think the CBN Governor should be sacked or something. Maybe the guy has no idea what to do.

    • B February 18, 2016 at 10:09 am

      The CBN is not an independent organization. Emiefele does not make policy decisions. Buhari gives his approval or disapproval on anything. Buhari is still waiting to have someone convince him on if devaluation would work or not. How pathetic!

      Fine, the last administration messed up the whole system with their blind looting and outright corruption, but at least there was still a semblance of structure, this chaos is outrageous, if they can’t get a budget right, how can they get an economy working?

      Prayers up!

    • Fasholaslover February 18, 2016 at 11:50 am

      Not only Emefiele but the Presidential system should be scrapped. Nigeria is not mature enough to handle an unwieldy system like we currently have. Too many idle rich people in govt. Councils, state houses of assembly, Gov’s, commissioners, SSA, SA, PA, Fed house of assembly, the senate multiple support staff, the Presidency, ministers, a useless and bloated civil service. Political jobbers etc any wonder the account don’t balance? Trust Nigeria to copy America ( the best there is) while we clearly lack the wherewithal to make it work. The army should just come back.

      • ElessarisElendil February 18, 2016 at 10:42 pm

        I could kiss you right now. I knew we’d agree on something at some point.

  • keke driver February 18, 2016 at 9:41 am

    In my department alone over 10 staffs have been sacked…..This is not the time to say “it is well” but a time to act fast and NOW..

  • Forreal February 18, 2016 at 10:01 am

    wahala dey oh! Can it even get worse than this? is this the N1 to $1 we were promised?? or did he mean N1000 to $1

  • June February 18, 2016 at 10:02 am

    Or we could all be truly patriotic and start patronizing MADE IN NIGERIA goods. It is the onlyyyy way!!!!

    • Becky February 18, 2016 at 10:50 am

      That is the solution. They know what they’re doing. Nigerians have become accustomed to importing. The only problem that needs to be addeessed is the light issue so industries and manufacturing can grow

    • Love February 18, 2016 at 1:44 pm

      First tell them to provide electricity and other basic amenities .

    • molarah February 19, 2016 at 7:34 pm

      Exactly. I was in the market last week, and the item I wanted to purchase had tripled in price. I was just rolling my eyes – where are these ones finding dollar to import goods? I finally found a locally produced version and paid at my intended price. Convince your suppliers that local is the way to go…

    • Frosh February 20, 2016 at 3:19 pm

      What are the made in Nigeria goods pls how many things are made in Nigeria!! The government and banks do not even encourage the youth to MAKE shit in Nigeria then overnight we should start churning out supplies for 170m people. Please be realistic

  • Chynwa February 18, 2016 at 10:16 am

    Dear June! U are so on point for this…Madein Naija here I come, No time for dollar/ pound saga….#cantshout

  • GeeGee February 18, 2016 at 10:19 am

    GBAM! @June has said it all.. We should start patronizing made in Nigeria goods. This country needs to go into manufacturing. The fact that we import matches, toothpick even is bad. Everybody wants to buy clothes that were made in UK or US (Aba boys are not trying in that area sha) but there are so many areas in this country that if it can only be developed it will reduce unemployment drastically as companies are downsizing heavily this period. Which way Nigeria???

  • ujay February 18, 2016 at 10:38 am

    We don’t have to lose hope. Let’s all have the courage to encourage ourselves… Everything will be fine. Just a matter of time. He that keepeth Isreal shall neither slumber nor sleep.

  • zzzzzzzzzzzzz February 18, 2016 at 10:44 am

    Everyone would now blame it on Jonathan, lets agree mass looting happened under his regime but things where still properly managed. the President and finance ministry need to get a grip on things

  • TeeS February 18, 2016 at 10:44 am

    This has to be the cheapest spring break destination! Lol! Okay let me stop playing.
    But for real tho $1000 is #385,000 {~_~}, that’s someone’s salary with a decent job huh?
    This is the plan I’ve got
    Y’all listening ?
    Gather all the politicians in a yacht , a huge on, take them to never land.
    Let the “educated” rule. When I mean educated, I don’t mean you went to college for four years and you had a degree. I mean ” educated” you’re sound up there and your reasoning , leadership skills are up to par. A few of them here and there! Tada! Nigeria will be better in 10 years
    Short term plan! Run away while you can!
    Yes it is rough everywhere! Even in Hamrica(America), but it ain’t half as bad tbh.
    But when a country relies so much on oil and gas, this is what happens. Find another hustle Nigeria! We got farms in it? The farmers here, awon red necks, they are balling oh.
    God isn’t going to come down to fix it , he gave us a brain therefore we must apply wisdom n fix this hell hole that we call Nigeria.
    Suggestions !!!

  • prince February 18, 2016 at 10:57 am

    I think someone just said something that struck me and that person is @Junet. don’t you guys think we should just let all these Calvin Klein, Louis Vuitton, Tom Ford and their likes rest for a while and lets celebrate our own.
    I am very guilty but it all begins with a mindset. we just have to decide and go for our own. if its not up to standard, we can complain and criticize and trust me the criticism would make them better and there we go. We have good stuffs in this country, we just don’t know it yet. Lets all go for MADE IN NIGERIA and help boost our economy. This is the only Country we can truly call OURS.

  • nene February 18, 2016 at 10:59 am

    i will say people should buy made in nigeria goods but even the woman selling a kara and puff puff has increased her price because the oil she uses is imported. even if we buy made in nigeria goods, the price will still be much lower compared to foreign goods, but dollar affects all part of our society.

  • Ready February 18, 2016 at 12:03 pm

    Until we’re all ready to make the necessary adjustments, na so e go dey go.

    Few Nigerians know the hassle and crazy cost to buy a foreign car in India. Why? India is protecting its automobile industry, and after much hardship for its people, look at Tata now. It’s even exporting cars.

    “I only buy human/Brazilian/Peruvian hair”- $$$
    #VeraWangGang -$$$
    “Loubous for me and my groom”- $$$
    Fresh exotic flowers for my wedding – $$$
    Italian furniture – $$$
    “Nothing in my kitchen is made in Nigeria”- $$$
    “Kelloggs/Alpen all the way” – $$$

    For aaaalll things that aren’t technology, there’s a Nigerian equivalent. Yes, even toothpicks and tomato paste. Despite electricity issues, manufacturers of essential products are rejoicing right now. From the Mai Atafos to the Majus (clothes), Sonia (tomato paste) and many more artisans (Aba boys, furniture makers, etc) in this country, our entrepreneurs are improving but Nigerians continue to downplay their products and services.
    Meanwhile we let all these Naija-based ‘consultants’ quote prices to us in $. Hell, even students who attend schools in neighbouring African countries pay fees in $.

    Make we dey look.

  • hmm February 18, 2016 at 12:35 pm

    Have we all noticed that the made in Nigeria goods or products are equally expensive

  • sistren February 18, 2016 at 1:12 pm

    Plix edaakun….who knows how much Canadian dollar is now? We wanto go to school august

  • Olu February 18, 2016 at 1:29 pm

    Hopefully we will stop buying imported toothpick and chewing stick! Trees full everywhere for Naija.

  • #WhatDataCanDoToAssumptions! February 18, 2016 at 1:53 pm

    In response to all the comments here, one of the most shocking stats I have seen recently is in an article that cites World Bank figures to say that of the 160 countries for which there is data, Nigeria has the lowest import to GDP ratio at 12. 5% !!! Apparently, despite how it appears, we do not have an import problem, the governments selective target of imports and this leaning towards import substitution is not really founded. We have an export problem – with over 90 % of our exports being oil and we need an economic team that understands this distinction.

    • ElessarisElendil February 18, 2016 at 10:45 pm

      *Hugs*. Permit me to add my rhetoric(ish) to your data.

  • jwezee February 18, 2016 at 2:07 pm

    Buy made in Nigeria goods, when Nigeria’s day to day depends on importation, the common frozen chicken n fish in our market were do u think they get them? All being imported, let’s stop deceiving our selves, this Government has not done shit! Since it took office in may of 2015 almost a year now. Instead they fool them selves saying they are fighting corruption. Who mentioned CBN gov here, pls whats the job of our aunti mrs Finance Minister? Only to be speaking grammar I guess. Fighting corruption Since and they avnt arrested a single soul.. Get things working get back to work its a problem for BMB…. People I feel for are the once in the rural areas they will fill buhari’s weight. Its Sad.

  • Sisi February 18, 2016 at 2:09 pm

    For real though this is scary, really scary.

  • ForTheRightsOfMen February 18, 2016 at 2:57 pm

    Those of us living and working in London, “Godwin o”! We bless God o! If anyone does not have money for their imported makeup and other girl stuffs and manly things please email me – I am happy to send some wad for free as I am feeling generous. I am just joking – I don’t want to give my email on social network again. My ‘feffle’, no condition is permanent. Things will get better by God’s grace.

  • Forreal February 18, 2016 at 3:06 pm

    No boo…. i don’t believe your statistics and you should have thought for a minute when you saw that cause i mean really look around you………………. enter any big supermarket around you… how many cereals are made in Nigeria there? not just cereals pick up a few cookies, stop Aboki that sells rechargeable lanterns and check where it was made. it was made in China boo, Tin tomatoes, or is it appliances? or furniture? or clothes? shoes? bags? children’s toys? Nigeria imports WAY TOO MUCH! 3 words you can find on almost anything you buy in this country “made in china” More than half of their exportation on oil is just greed.

  • Scott February 18, 2016 at 7:52 pm

    Just don’t know this type of change, what a change…..this is another austerity again…buhari regime.

  • ElessarisElendil February 18, 2016 at 11:14 pm

    June, Becky,Chynwa,GeeGee,prince,Ready,Olu,Forreal. I greet una.

    The matter way we table so nah something wey dem pipu dey call Economics.

    I’ll admit, I initially upvoted June’s comment because I love me some sarcasm(I still it is) so I’m quite shocked some seem to be taking her seriously. The real world(last I checked we all live in it) simply does not work that way.

    The most important things to bear in mind in this comment(ish write up) are 1)Finite Resources. 2)Incentives 3) Competition.

    First the reason the dollar is currently at its abysmal levels are finite resources and incentives. They’re a limited amount of dollars in the world, of this pool Nigeria acquires an even more limited amount. However this limited pool is being chased around by a deluge of Naira, think of it like this, Me(mooching of my Mother), Mrs Pedro(running a successful business), Oga at the top(mooching of Nigeria) I need dollars to buy video games(and some books), Mrs Pedro needs them for her business and the senator for his UNILAG girlfriend. Now think of the current exchange rate situation as those auction scenes we see in the movies.

    Hausa Guy: 1 dollar.

    Me: 170 naira

    Mrs Pedro: 195

    Oga: 200

    Me: WTF its just video-games N208 tops!

    Mrs Pedro: I’ve got staff, N250

    Oga: I’ve got punani to land……………N505

    Hausa Guy: Going once, Going twice and the 1 dollar is sold to the potbellied gentleman in the babanriga.

    My question is why in God’s holy name do you people think in a situation with already limited dollars the solution is too crowd out our means of getting more dollars????????????? How does that make any sense???

    Now you’re thinking how is stopping more imports not helping? why? Because as my scenario paints, yes a minority of people using dollars spend it on videogames(or other less fun stuff) like me and Oga at the top but the majority are like Mrs Pedro who run a business and more importantly a business that can compete, to deny globalisation is an exercise in stupidity. Those KLM, Dubai Tourism e.t.c adverts that occasionally hurt our eyes, they’re dollars added to our limited pool.

    You guys encouraging this growNaija madness are encouraging a policy that crowds out people like her(earners) and playing right into the hands of moochers like me. I got my video games, its not my money, my Mother may not be a Mama at the top but my being an only child distorts things, not so businesses with finite resources and their staff and the knockdown economic effect. This is getting too long, no space to go into round tripping and why GLOBAL competition is necessary or to demolish the protectionism argument somebody advanced up there. Another time maybe but for the love of God! let’s get the government to end this monetary policy, unlike Oga at the top my pocket money has its limits.

  • meme February 19, 2016 at 9:46 am

    Pls how much is the Canadian dollar to naira rate?

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