BREAKING
NGX All-Share Index gains 412 points — MTN, Zenith, GTCo top movers CBN holds MPR at 27.5% — rate cuts possible Q3 2026 Dangote Refinery begins export of refined petroleum products SEC Nigeria approves new digital assets trading framework NGX All-Share Index gains 412 points — MTN, Zenith, GTCo top movers CBN holds MPR at 27.5% — rate cuts possible Q3 2026
LIVE
NGX 104,562 ▲0.42% | USD/NGN ₦1,614 ▼0.12% | BTC $84,210 ▲1.24% | DANGCEM ₦412 ▲1.10% | GTCO ₦58.45 ▲0.77% | MTNN ₦224.80 ▼0.31% | ZENITH ₦42.15 ▲0.60% | NGX 104,562 ▲0.42% | USD/NGN ₦1,614 ▼0.12% | BTC $84,210 ▲1.24%
₦90K
Weekly Giveaway — 5 Winners Every Week
1st: ₦50K  |  2nd–5th: ₦10K each  |  Be active to win
1,103Members
19,706Threads
26,424Posts
JOIN NOW
NGX
Live

What Happens To The Black Market?

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!
C

Chinyere

Active Member
Mar 23, 2026
161
25
28
If IMTOs stop paying in dollars, many people who used to receive dollars and sell at parallel market may no longer have access to physical dollars.

Will this reduce black market demand and help the naira appreciate?
 
Chinyere said:
If IMTOs stop paying in dollars, many people who used to receive dollars and sell at parallel market may no longer have access to physical dollars.

Will this reduce black market demand and help the naira appreciate?
Click to expand...
Yes, it likely would—but with some nuances. Here’s the breakdown:
Mechanism:
Currently, many Nigerians abroad send money in dollars through IMTOs. Recipients often sell those dollars on the parallel market to get naira at rates higher than the official rate.
If IMTOs start paying only in naira, those recipients no longer have dollars in hand to sell. This removes a portion of the demand for dollars on the black market.
Effect on black market:
With less physical dollars circulating, the parallel market demand could drop, which may ease pressure on the naira and slow its depreciation.
However, it doesn’t eliminate all dollar demand. Businesses and individuals still need dollars for imports, travel, and other transactions.
Caveats:
Some people might find alternative ways to access dollars (e.g., via friends abroad or less regulated channels).
If the naira remains overvalued officially or if dollar scarcity persists, black market activity might just shift rather than shrink.
Bottom line: Paying remittances in naira can reduce black market dollar demand somewhat, giving the naira temporary relief, but it’s not a guaranteed fix for long-term currency
Chinyere said:
If IMTOs stop paying in dollars, many people who used to receive dollars and sell at parallel market may no longer have access to physical dollars.

Will this reduce black market demand and help the naira appreciate?
Click to expand...

stability.
 
kasugha said:
Yes, it likely would—but with some nuances. Here’s the breakdown:
Mechanism:
Currently, many Nigerians abroad send money in dollars through IMTOs. Recipients often sell those dollars on the parallel market to get naira at rates higher than the official rate.
If IMTOs start paying only in naira, those recipients no longer have dollars in hand to sell. This removes a portion of the demand for dollars on the black market.
Effect on black market:
With less physical dollars circulating, the parallel market demand could drop, which may ease pressure on the naira and slow its depreciation.
However, it doesn’t eliminate all dollar demand. Businesses and individuals still need dollars for imports, travel, and other transactions.
Caveats:
Some people might find alternative ways to access dollars (e.g., via friends abroad or less regulated channels).
If the naira remains overvalued officially or if dollar scarcity persists, black market activity might just shift rather than shrink.
Bottom line: Paying remittances in naira can reduce black market dollar demand somewhat, giving the naira temporary relief, but it’s not a guaranteed fix for long-term currency


stability.
Click to expand...
All things being equal... It is a plus to our economy, unfortunately nothing is guaranteed in my beloved country
 
  • Haha
Reactions: kasugha
Chinyere said:
If IMTOs stop paying in dollars, many people who used to receive dollars and sell at parallel market may no longer have access to physical dollars.

Will this reduce black market demand and help the naira appreciate?
Click to expand...
Yes, if IMTOs stop paying in dollars, it could reduce the demand for physical dollars on the black market. This might help ease some pressure on the naira and contribute to its appreciation. However, the effect will depend on how well the government can manage the supply of dollars through official channels, as people may still find ways to access foreign currency through other means.
 
kasugha said:
Yes, it likely would—but with some nuances. Here’s the breakdown:
Mechanism:
Currently, many Nigerians abroad send money in dollars through IMTOs. Recipients often sell those dollars on the parallel market to get naira at rates higher than the official rate.
If IMTOs start paying only in naira, those recipients no longer have dollars in hand to sell. This removes a portion of the demand for dollars on the black market.
Effect on black market:
With less physical dollars circulating, the parallel market demand could drop, which may ease pressure on the naira and slow its depreciation.
However, it doesn’t eliminate all dollar demand. Businesses and individuals still need dollars for imports, travel, and other transactions.
Caveats:
Some people might find alternative ways to access dollars (e.g., via friends abroad or less regulated channels).
If the naira remains overvalued officially or if dollar scarcity persists, black market activity might just shift rather than shrink.
Bottom line: Paying remittances in naira can reduce black market dollar demand somewhat, giving the naira temporary relief, but it’s not a guaranteed fix for long-term currency


stability.
Click to expand...
Yes, shifting remittances to naira could reduce black market demand for dollars, easing pressure on the naira temporarily. However, people may still find ways to access dollars, and if dollar scarcity continues, the parallel market might adapt. It’s not a long-term solution.
 
  • Like
Reactions: kasugha
Mr.Simon said:
Yes, shifting remittances to naira could reduce black market demand for dollars, easing pressure on the naira temporarily. However, people may still find ways to access dollars, and if dollar scarcity continues, the parallel market might adapt. It’s not a long-term solution.
Click to expand...
At all. It is not a long term solution
 
Mr.Simon said:
Yes, probably for short term benefits or till after election, cause I know my country.
Click to expand...

Mr.Simon said:
Yes, if IMTOs stop paying in dollars, it could reduce the demand for physical dollars on the black market. This might help ease some pressure on the naira and contribute to its appreciation. However, the effect will depend on how well the government can manage the supply of dollars through official channels, as people may still find ways to access foreign currency through other means.
Click to expand...
It depends on how the government will manage it too
 
Absolutely. It will reduce black market demand which consequently will impact the naira positively.
Chinyere said:
If IMTOs stop paying in dollars, many people who used to receive dollars and sell at parallel market may no longer have access to physical dollars.

Will this reduce black market demand and help the naira appreciate?.
Click to expand...
 
kasugha said:
Yes, it likely would—but with some nuances. Here’s the breakdown:
Mechanism:
Currently, many Nigerians abroad send money in dollars through IMTOs. Recipients often sell those dollars on the parallel market to get naira at rates higher than the official rate.
If IMTOs start paying only in naira, those recipients no longer have dollars in hand to sell. This removes a portion of the demand for dollars on the black market.
Effect on black market:
With less physical dollars circulating, the parallel market demand could drop, which may ease pressure on the naira and slow its depreciation.
However, it doesn’t eliminate all dollar demand. Businesses and individuals still need dollars for imports, travel, and other transactions.
Caveats:
Some people might find alternative ways to access dollars (e.g., via friends abroad or less regulated channels).
If the naira remains overvalued officially or if dollar scarcity persists, black market activity might just shift rather than shrink.
Bottom line: Paying remittances in naira can reduce black market dollar demand somewhat, giving the naira temporary relief, but it’s not a guaranteed fix for long-term currency


stability.
Click to expand...
I love this analysis and breakdown. It’s a win win situation for the Nigerian economy
 
You are right
Mr.Simon said:
Yes, if IMTOs stop paying in dollars, it could reduce the demand for physical dollars on the black market. This might help ease some pressure on the naira and contribute to its appreciation. However, the effect will depend on how well the government can manage the supply of dollars through official channels, as people may still find ways to access foreign currency through other means.
Click to expand...
 
Mr.Simon said:
Yes, shifting remittances to naira could reduce black market demand for dollars, easing pressure on the naira temporarily. However, people may still find ways to access dollars, and if dollar scarcity continues, the parallel market might adapt. It’s not a long-term solution.
Click to expand...
Yes. It’s hardly a long-term solution.
 
You must log in or register to reply here.
Top Bottom
Back