The British pound traded at roughly ₦1,930 in Nigeria’s parallel market on Wednesday, while inter-bank rates hovered near ₦1,900, highlighting the persistent gap between formal and informal exchange channels. The dual-tier system continues to shape how pounds are sourced and valued across the country.
According to the latest bulletin from Abokifx in Lagos, the street rate for pounds stood at ₦1,898 for buying and ₦1,930 for selling per £1. In the formal market, mid-market inter-bank and online rates were around ₦1,902 per £1, reflecting a more stable environment than the wider fluctuations seen on the street.
On Wednesday, the pound remained largely steady in the parallel market, with the sell rate edging up slightly from ₦1,928 on Tuesday to ₦1,930. Institutional and online quotations stayed below ₦1,910, showing that the formal channels remain somewhat insulated from volatility affecting the street market.
Analysts point to several factors behind the persistent spread. Limited sterling supply through authorised channels, strong demand for pounds for travel and diaspora remittances, and minimal central bank interventions targeting the pound rather than the US dollar have all contributed. The broader foreign-exchange environment in Nigeria continues to be influenced by oil revenue inflows, external debt obligations, and efforts to maintain stability in the exchange rate regime.
Over the past week, the pound has traded within a narrow range locally, with inter-bank quotes moving between ₦1,900 and ₦1,910 per £1, while the parallel market has consistently hovered around ₦1,930 for sales.
For Nigerians, the current rates carry practical implications. Travellers to or from the UK or anyone dealing in pounds should expect to budget between ₦1,900 and ₦1,930 per £1, depending on the channel used. Businesses importing goods from the UK or paying suppliers abroad may incur higher costs if forced to rely on parallel markets. Those using formal banking channels may secure lower rates, though fees and access limitations can still push effective costs above inter-bank quotations.
This dual-rate system underscores the ongoing challenges in Nigeria’s foreign exchange market, as both individuals and businesses navigate between formal and informal channels to meet their sterling needs.
