# The Naira Exchange Rate, Explained

> The naira has traded under a series of official and parallel ('black market') rate regimes since the 1980s, with the gap between them widening sharply in the early 2020s before the Central Bank of Nigeria unified all foreign exchange windows in June 2023. This explainer describes that history and why a gap between official and street rates persists.

**Category:** Current Affairs / Live Facts · **Updated:** 2026-07-26 19:36:35 · **Canonical:** https://nigeriastuff.org/a/naira-exchange-rate

## Key facts
- **Unification date:** 14 June 2023 — CBN collapsed all FX windows into one
- **Naira rate, start of 2023:** ≈₦461.5/$1 (official)
- **Naira rate, year-end 2023:** ₦907.11/$1 official (NAFEM); ₦1,215/$1 parallel market
- **Official/parallel gap, July 2025:** Narrowed to about ₦1 (₦1,536 official vs ₦1,535 parallel)
- **Naira rate, late July 2026:** ≈₦1,367 official vs ≈₦1,415–1,425 parallel (indicative)
- **Current FX market name:** Nigerian Foreign Exchange Market (NFEM), formerly the Investors' & Exporters' (I&E) window
- **Rate-setting model:** Managed float — 'willing buyer, willing seller', driven by market demand and supply

## Sources
- Foreign Exchange Market (FX Market operations) — Central Bank of Nigeria (https://www.cbn.gov.ng/intops/FXMarket.html)
- Official: CBN announces unification of all exchange rate windows — Nairametrics (https://nairametrics.com/2023/06/14/official-cbn-announces-unification-of-all-exchange-rate-windows/)
- NAFEM Exchange Rate Ends 2023 at N907.11, 26.8% Depreciation Since Unification — Nairametrics (https://nairametrics.com/2023/12/29/nafem-exchange-rate-ends-2023-at-n907-11-26-8-depreciation-since-unification/)
- Naira Stabilises as Exchange Rate Gap Narrows to N1 Across Parallel and Official Markets — Nairametrics (https://nairametrics.com/2025/07/18/naira-stabilises-as-exchange-rate-gap-narrows-to-n1-across-parallel-and-official-markets/)

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