As of Wednesday, the naira was trading for between N900 and N1,210 to the dollar on the black market in Lagos and Kwara State, a dramatic increase in value.

The value of the naira has also increased at the import and export (I&E) window.

The latest development is a reflection of the Central Bank of Nigeria (CBN)’s action taken on Monday. The bank, via a letter signed by Hassan Mahmud, its director of trade and exchange department, allocated $10,000 to each registered bureau de change (BDC) operator at the rate of N1,251 per dollar.

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The BDC operators are expected to sell a dollar at a profit not exceeding 1.5 percent. This has resulted in the local currency gaining strength against the United States of America’s dollar.

FIJ spoke with two BDC operators in Lagos and Kwara State to haggle the exchange price of the naira.

Olalode, a currency exchanger based in Ilorin, Kwara State capital, told FIJ that he was buying a dollar at the rate of N1,210. When told that the price was ridiculous, he said that he could raise it depending on the amount this reporter wanted to sell.

Hussaini, trading at the Ikorodu garage in Lagos State, said he could not disclose a price immediately because the black market rate was unstable.

On a second call, he said he had confirmed from his colleagues and was ready to buy a dollar for N900 from this reporter. He insisted he could not take it beyond N910 per dollar, even if the reporter was selling up to $500.

FIJ understands that black market rates could be determined by the ability of a seller to haggle a price and the willingness of a BDC operator to buy at a given price.

On the GTWorld FX platform of the Guaranty Trust Bank (GTB), the bank quoted N1,200 for a dollar as of 2:12 pm on Wednesday. Early this morning, it was N1,250 to a USD.

Some two hours before now, Naira Rates, an automated currency speculative account on X, valued the naira at N1,345 per dollar.

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Due to the fluctuations being experienced by the country’s currency, some government service providers have had to adjust exchange rates frequently. The Nigeria Customs Service (NCS) has adjusted FX rates for import duties and cargo clearance at least five times in two weeks.

Before the CBN dollar allocation to black market operators, the value of the naira was hovering between N1500 and N1,600 to a dollar.

Editor’s Note: ‘Sells’ changed to ‘exchanges’ in the headline to accommodate broader financial perspectives.