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Naira Depreciates in Black Market Amidst Sustained Dollar Demand

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By Merciful Omoba

The Nigerian Naira commenced the new trading week with a slight depreciation against the United States Dollar in the black market, reflecting sustained pressure as demand for foreign exchange continues to outstrip supply in the informal currency market.

As of Monday, July 28, 2025, currency traders across major hubs in Lagos, Abuja, and Kano reported the black market exchange rate for the Dollar to Naira as:

  • Buying Rate: ₦1,530 per $1
  • Selling Rate: ₦1,540 per $1

This ₦10 margin remains consistent with recent market trends, highlighting ongoing liquidity challenges despite various regulatory interventions by the Central Bank of Nigeria (CBN). For comparison, the CBN’s official window is reportedly trading around ₦1,510 to ₦1,520 per dollar.

Many individuals and small businesses continue to rely heavily on the black market due to limited accessibility to foreign exchange at the official rate, often citing stringent documentation requirements and limited allocations. This gap between the official and parallel markets continues to funnel most Nigerians towards the latter for faster and more flexible transactions.

Why the Black Market Remains Crucial

The persistence of the black market as a dominant source of retail forex in Nigeria is attributed to several factors:

  • Restricted Dollar Access: Banks and licensed dealers are often unable to meet the overwhelming demand for foreign currency.
  • Import Dependence: Nigeria’s heavy reliance on imports sustains a daily, high demand for dollars.
  • Inflation & Devaluation Hedge: Nigerians increasingly prefer to hold dollars as a hedge against the Naira’s persistent depreciation and soaring inflation.
  • Diaspora Remittances: Informal remittance channels often offer more favorable rates compared to official banking routes.
  • Speculation & Hoarding: Some traders engage in speculation, holding back dollars in anticipation of further Naira depreciation.

These combined factors ensure that the Dollar to Naira black market rate remains a critical indicator of Nigeria’s currency reality. Analysts predict that the Naira may remain under pressure this week if there isn’t a significant improvement in dollar supply through increased oil earnings, diaspora inflows, or direct CBN interventions. The parallel market is therefore expected to remain the benchmark for most individuals and businesses seeking foreign exchange in the short term.


Business

CBN Restores BDC Access to FX Market, Caps Weekly Purchases at $150,000

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By Huldah Shado

The Central Bank of Nigeria (CBN), has approved the participation of licensed Bureau De Change (BDC), operators in the Nigerian Foreign Exchange Market (NFEM), allowing each BDC to purchase up to $150,000 weekly.

The approval was contained in a circular dated February 10, 2026, signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, and addressed to authorised dealer banks and the general public.

The CBN said the move is aimed at improving foreign exchange liquidity in the retail segment of the market and meeting the legitimate needs of end users, amid a widening gap between the official and parallel market exchange rates.

Under the new arrangement, licensed BDCs can access foreign exchange from the NFEM through any authorised dealer bank of their choice at the prevailing exchange rate.

The apex bank directed banks to carry out full Know-Your-Customer (KYC), and due diligence checks on BDC clients before selling foreign exchange to them.

It also imposed reporting and transparency requirements, mandating BDCs to submit returns electronically to the CBN.

In addition, the bank prohibited third-party transactions and limited cash settlement to a maximum of 25 per cent of each transaction.

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Abuja Reports

Ultraviolet MFB MD Visits Equity Circle, Eyes Strategic Partnership

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By Samson Adeyanju 

The Managing Director and Chief Executive Officer of Ultraviolet Microfinance Bank, Bayonle Omoyele, has paid a working visit to Equity Circle, one of Abuja’s fast-growing real estate companies, as part of efforts to strengthen strategic partnerships within Nigeria’s real estate sector.

During the visit, Equity Circle’s Co-Founder and Chief Marketing Officer, Fabian George, conducted Omoyele on a tour of the company’s facilities and outlined its growth trajectory.

He disclosed that the firm recorded significant milestones over the past four years, culminating in an ₦8 billion revenue in the 2025 financial year.

Discussions between both parties focused on establishing a strategic credit relationship, with proposed areas of collaboration including invoice discounting, structured credit solutions, and cash-flow management support to help Equity Circle sustain and scale its operations.

Addressing Equity Circle staff during an interactive session, Omoyele emphasised the importance of strong marketing fundamentals, highlighting the 4Ps of marketing-Product, Price, Place, and Promotion, as key drivers of long-term competitiveness and brand leadership.

He also urged the team to adopt a long-term growth mindset, remain focused, and ensure that every unit contributes meaningfully to the organisation’s strategic goals, noting that disciplined execution is critical in Nigeria’s evolving real estate market.

The visit underscores Ultraviolet Microfinance Bank’s commitment to supporting high-growth enterprises through tailored financial solutions and partnerships that promote sustainable economic development.

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Business

Moniepoint Strengthens Africa’s Tech Talent Pipeline with DreamDevs Cohort 2

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By Omoniyi David

Moniepoint Inc has reaffirmed its commitment to building Africa’s technology talent pipeline, announcing the opening of applications for the second cohort of its flagship DreamDevs initiative.

Co-Founder and CTO Felix Ike described DreamDevs as a programme that equips recent graduates with industry-ready skills and hands-on experience to bridge the continent’s tech talent gap.

“The success of our first cohort validated that Africa’s young tech talent can compete globally. This year, we aim to convert half of our participants into full-time employees,” Ike said, adding that the initiative creates sustainable career pathways that drive Africa’s digital economy.

DreamDevs complements Moniepoint’s other talent development programmes, including HatchDev, in collaboration with NITHub, University of Lagos, which trains about 500 specialised developers annually, and the Women-in-Tech programme, now in its fifth year.

The initiative also aligns with the Federal Government’s 3 Million Technical Talent (3MTT), programme, with Moniepoint serving as a key sponsor, offering graduates a specialised pathway from training to employment.

DreamDevs underscores Moniepoint’s broader mission to leverage technology to empower Africa’s youth and advance the continent’s digital economy.

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