In January 2020, one US dollar cost approximately ₦365 at the official CBN window. By early 2024, that same dollar cost over ₦1,500. By April 2026, it stabilised around ₦1,340–₦1,360. This article tells the complete story of how the naira got here, what caused the collapse, and what the stabilisation means for everyday Nigerians.
Today's rate: Check the live dollar to naira rate on NaijaHub, updated daily from the CBN official window.
Nigeria entered 2020 with relative exchange rate stability under a managed float system. The CBN maintained the naira within a tight band. COVID-19 hit in March 2020, oil prices crashed, and the CBN devalued the official rate twice — from ₦307 to ₦360 in March, then to ₦380 in August. A parallel "black market" rate ran at ₦460–₦480, reflecting pent-up demand for dollars that the official market could not meet.
The official rate held relatively stable while oil revenues recovered. However, the CBN imposed strict controls on who could access foreign exchange, excluding many importers from the official window. The parallel market rate jumped to ₦500–₦570, creating a widening gap between the official and street rates. Nigeria's foreign reserves were under pressure and dollar inflows from diaspora remittances were being captured by the parallel market rather than the banking system.
Despite high oil prices globally — Brent crude touched $120 per barrel — Nigeria struggled to earn petrodollars because NNPC was not remitting FX earnings to the CBN due to subsidy obligations. The parallel market rate accelerated past ₦700. The IMF and World Bank repeatedly urged Nigeria to unify its exchange rate windows, which by now numbered five or more, each with different rates for different types of transactions.
This was the most dramatic year in naira history. President Bola Tinubu took office in May 2023 and immediately announced the unification of exchange rate windows — effectively floating the naira. The official rate jumped from ₦460 to over ₦750 overnight. By December 2023 it had reached ₦900 at the official window and over ₦1,200 on the parallel market. In the final weeks of 2023 and into January 2024, the naira collapsed further, touching ₦1,500 at the official window — a rate that would have seemed unthinkable two years earlier.
February 2024 saw the naira hit its weakest point ever, with some parallel market quotes exceeding ₦1,900 per dollar. The CBN under its new governor, Yemi Cardoso, began aggressive interventions — clearing a backlog of foreign exchange obligations, raising interest rates to 24.75%, and implementing new rules to attract dollar inflows. The government also secured emergency support from the World Bank and other multilateral lenders.
The combination of higher interest rates, improved CBN transparency, and dollar inflows from the new eurobond issuances helped stabilise the naira. The gap between the official and parallel market rates narrowed significantly — from over ₦300 at the worst point to under ₦100. Diaspora remittances began flowing through official channels again as the CBN offered competitive rates.
By early 2026, the naira had stabilised in the ₦1,340–₦1,400 range against the dollar at the official CBN window. While far weaker than its pre-float level, this represents a significant recovery from the ₦1,900 lows. The CBN has maintained higher interest rates and continued to build foreign reserves. Nigeria's current account position improved modestly as import bills fell and non-oil exports grew.
| Year | Official Rate (approx.) | Parallel Rate (approx.) | Key Event |
|---|---|---|---|
| 2020 | ₦360 – ₦380 | ₦460 – ₦480 | COVID-19, two CBN devaluations |
| 2021 | ₦400 – ₦415 | ₦500 – ₦570 | Forex scarcity, CBN restrictions |
| 2022 | ₦415 – ₦445 | ₦650 – ₦750 | High oil prices but subsidy drain |
| 2023 (H1) | ₦460 – ₦760 | ₦700 – ₦900 | Naira float announced May 2023 |
| 2023 (H2) | ₦760 – ₦1,500 | ₦900 – ₦1,600 | Continued depreciation post-float |
| Early 2024 | ₦1,500 – ₦1,900 | ₦1,600 – ₦1,950 | All-time low, CBN interventions begin |
| Late 2024 | ₦1,400 – ₦1,600 | ₦1,500 – ₦1,700 | Stabilisation, rates narrow |
| 2025 | ₦1,350 – ₦1,500 | ₦1,380 – ₦1,550 | Gradual recovery continues |
| Apr 2026 | ₦1,340 – ₦1,360 | ₦1,370 – ₦1,400 | Relative stability maintained |
The naira's depreciation was driven by a combination of structural and policy factors that built up over several years. Nigeria's economy is heavily dependent on oil exports for government revenue and foreign exchange earnings. When oil revenues are insufficient or not properly channelled, the country struggles to supply enough dollars to meet demand for imports, debt payments, and diaspora transfers.
The CBN's attempt to maintain an artificially low official exchange rate for years created a dual system where insiders accessed cheap official dollars while ordinary businesses were forced to the expensive parallel market. When the float was finally implemented in 2023, the pent-up adjustment happened all at once, causing the sharp depreciation seen that year.
Fuel subsidy removal, while painful, was a necessary step. The subsidy was consuming billions of dollars annually that could have supported the naira. Its removal freed up fiscal space but also triggered immediate inflation as transport and logistics costs spiked.
For anyone who earns in naira and spends in naira, the exchange rate affects prices of imported goods, manufacturing inputs, and anything with a dollar-denominated cost in the supply chain. Nigeria imports significant quantities of food, medicine, machinery, and fuel. When the naira weakens, all of these become more expensive in naira terms, feeding into the inflation Nigerians have experienced since 2023.
For diaspora Nigerians sending money home, a weaker naira means your remittances go further in naira terms — your family receives more naira for every pound, dollar, or euro you send. This partly explains why diaspora remittances to Nigeria remained robust even during the depreciation period.
Nigeria's exchange rate stability depends primarily on oil production levels, CBN policy consistency, and investor confidence in the economy. As of April 2026, the rate has stabilised but a return to pre-2023 levels (below ₦500) is unlikely in the near term without a fundamental transformation of Nigeria's export base and foreign exchange earning capacity.