The British pound sterling continued to maintain a strong lead over the Nigerian currency, the Naira.
Reports from multiple market trackers on Wednesday, November 5, 2025, showed black-market rates hovering between ₦2,030 and ₦2,100 per £1.
Naijaonpoint reports that the development highlights ongoing weakness in Nigeria’s foreign exchange market and rising demand for foreign currencies amid constrained supply.
Today’s records showed that mid-market and online exchange platforms pegged the average conversion rate at ₦1,914.50 per £1, while parallel market operators in Lagos and Abuja quoted between ₦2,030 and ₦2,100.
The wide gap between the official and street rates underscores persistent volatility in the foreign exchange system, with importers and individuals seeking foreign currencies turning increasingly to the parallel market.
The sustained rise in the pound’s value is affecting businesses and individuals with exposure to UK-based transactions. Importers paying suppliers in pounds and families settling tuition and living expenses for students in the United Kingdom are among the hardest hit.
The ₦1,900-₦2,100 range is now a realistic benchmark for anyone budgeting for school fees or business payments to the UK.
According to Vanguard, industry analysts say the disparity reflects ongoing liquidity challenges and speculative trading driven by Nigeria’s constrained forex inflows and high dependence on imported goods.
Forex Market Still Under Pressure
Naijaonpoint reports that the continuous premium of the pound over the naira mirrors sustained demand for hard currencies in the informal market, where the supply of both U.S. dollars and pounds remains limited.
Market operators link the widening spread to challenges in the foreign exchange supply chain, particularly the scarcity of dollars and the high rate of ₦1,443.77 per $1 recorded on the black market.
According to analysts, unless Nigeria records a significant boost in foreign exchange inflows, through oil revenues, diaspora remittances, or export expansion, the pound could continue trading above the ₦2,000 mark in the near term.
“The market will remain tight until there’s a meaningful injection of FX liquidity. Without that, the pound will hold firm against the naira,” an analyst with a Lagos-based investment firm said.
They advised businesses and individuals to monitor both official rates published by the Nigerian Foreign Exchange Market (NFEM) and real-time dealer quotes to guide their financial planning.
With the global economy showing mixed recovery signs and the UK’s currency maintaining resilience, traders predict that the pound’s dominance could persist for the rest of the quarter.
Unless Nigeria introduces new fiscal or monetary measures to stabilise its currency, the ₦2,000 threshold may become the new normal for pound-to-naira transactions in the parallel market.
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