Economy
Food Crisis Looms in Northern Nigeria as World Bank Warns of Insecurity and Inflation
The World Bank has issued a warning that seven states in northern Nigeria are facing a high risk of food insecurity in 2024, due to the ongoing insecurity and armed conflicts in the region.
The states affected are Borno, Adamawa, Yobe, Kaduna, Katsina, Sokoto, and Zamfara, which are located in the northeast and northwest zones of the country.
The World Bank’s latest food security report projected that most areas in West and Central Africa would have minimal or moderate food insecurity (IPC Phase 1 or 2) until May 2024, but Nigeria’s northern states would suffer from crisis or emergency food insecurity levels (IPC Phase 3 or 4), mainly because of the worsening security situation and the decline of livelihoods.
The report also noted that some areas in the northeastern states, such as Abadam, Bama, Guzamala, Marte and others, would experience severe food shortages and limited access to markets and humanitarian assistance, as a result of the insurgency and violence perpetrated by Boko Haram and other armed groups.
The World Bank further stated that over 63.2% of low-income countries witnessed inflation rates above 5%, which was a 1.3%-point increase from the previous food update on January 17, 2023.
Nigeria has been grappling with a food crisis that has driven up the prices of food items in the market, due to the inability of farmers to cultivate their lands in the north, as a result of the rampant banditry and kidnapping that have plagued the region.
The exchange rate between the U.S. Dollar (USD) and the Nigerian Naira (NGN) remains a crucial topic for businesses, travelers, and investors.
As of today, Friday, March 28, 2025, the exchange rates in both the official and parallel markets have experienced fluctuations, reflecting ongoing economic trends.
Official Dollar to Naira Exchange Rate The Central Bank of Nigeria (CBN) sets the official exchange rate, which is significantly lower than the parallel market rate. According to the latest data: Dollar to Naira exchange rate for today, Friday, March 28, 2025, is approximately ₦1,519 to ₦1,542 in the official market.
Source Exchange Rate (₦ per $1) Date CBN ₦1,532.39 March 25, 2025 Yahoo Finance (Opening) ₦1,531.50 March 27, 2025 Yahoo Finance (Closing) ₦1,533.52 March 27, 2025 The official exchange rate is the rate at which commercial banks and financial institutions trade forex under CBN regulations.
However, due to forex scarcity, many individuals and businesses turn to the black market.
Black Market Dollar to Naira Exchange Rate The parallel market (black market) offers a different exchange rate, often higher than the official rate.
Reports from the Lagos parallel market on March 27, 2025, indicate: In the black market, the Dollar to Naira exchange rate as of today, March 28, 2025, is approximately ₦1,560 for buying and ₦1,570 for selling. –
Transaction Type Exchange Rate (₦ per $1) Buying Rate ₦1,555 Selling Rate ₦1,560 Other reports suggest an average black market rate of ₦1,540 per USD, reflecting the fluctuations observed throughout the week.
Recent Dollar to Naira Fluctuations Over the past week, the exchange rate has varied significantly: Date Lowest Rate (₦) Highest Rate (₦) March 24, 2025 ₦1,566.29 ₦1,566.29 March 27, 2025 ₦1,514.92 ₦1,533.52 These fluctuations highlight the volatility in the forex market, influenced by factors such as inflation, forex reserves, and government policies.
Government’s Stance on Forex Exchange The CBN does not officially recognize parallel market rates and advises individuals to conduct foreign exchange transactions through authorized financial institutions.
The apex bank has implemented policies to stabilize the naira, including forex interventions and restrictions on certain transactions.
Experts recommend businesses and individuals monitor the forex market closely and use official channels to avoid excessive rates and fraud in the black market. What you Should Know The dollar to naira exchange rate remains a key economic indicator in Nigeria.
With ongoing market fluctuations, staying informed about both official and parallel market rates is crucial for businesses and individuals making financial decisions. For real-time updates on exchange rates, consult financial institutions, forex trading platforms, or the Central Bank of Nigeria.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the bank is beginning to see signs of progress in stabilising the foreign exchange (FX) market and curbing inflation, as recent policy reforms start to yield results.
Cardoso stated this during an engagement with scholars from the Harvard Kennedy School (HKS) at the CBN headquarters in Abuja.
The scholars were visiting Nigeria as part of the Africa Trek initiative, which also included a stop in Ghana.
The visit marked the first time a Harvard Africa Trek delegation would visit the Central Bank of Nigeria.
The delegation was comprised of 50 students from 19 countries, including representatives from Harvard Business School, Massachusetts Institute of Technology (MIT), and Stanford University.
In a statement issued by the CBN on Tuesday, Cardoso, who is an HKS alumnus and the first African elected to the global HKS Alumni Board of Directors, reiterated the Bank’s commitment to driving policy-oriented solutions and strengthening trust in Nigeria’s financial system.
“As we reset the Bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances,” Cardoso said.
While addressing Nigeria’s macroeconomic outlook, he acknowledged existing challenges but pointed to key indicators suggesting improvement.
He noted that the FX market is beginning to stabilise and that inflationary pressures are gradually moderating.
The statement read, “Addressing Nigeria’s economic landscape, Mr Cardoso acknowledged recent challenges but highlighted progress in stabilizing the foreign exchange market and curbing inflation.”
Cardoso also highlighted the growing interest from international institutions as a positive signal. He referenced recent visits from senior executives at JP Morgan, Citi Bank, and the International Monetary Fund (IMF) as evidence of renewed investor confidence.
“These are individuals who base their decisions on data and trends, not sentiment. Their interest reaffirms that we are on the right path,” he added.
President of the Harvard Kennedy School Alumni Association of Nigeria, Adaora Ndukwe, and the HKS Nigeria Trek Delegation Lead, Sheffy Kolade, commended the CBN for hosting the students and for its continued engagement with future policymakers.
The Africa Trek is designed to facilitate direct interaction between emerging global leaders and key African policymakers.
It serves as a platform for discussions on governance, innovation, economic development, and the strategic role of central banks in national growth.
What is the Dollar to Naira Exchange rate at the black market also known as the parallel market (Aboki fx)?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for ₦1560 and sell at ₦1570 on Monday 24th March, 2025, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
Buying Rate
₦1560
Selling Rate
₦1570
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
Highest Rate
₦1537
Lowest Rate
₦1527
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
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