At its peak, Nigeria’s Aboki dollar network moved more foreign currency in a single day than many banks. Near banks, bus stops, airports, and marketplaces, these dealers pocketed wads of cash, ready to sell dollars, pounds, and euros.

One quick word, a nod, or a discreet hand signal, and the deal was done. For students paying tuition abroad, importers buying goods from China, freelancers working with international clients, and travellers needing cash for trips, the Aboki were more than convenient; they were essential lifelines in a system where official channels were slow, bureaucratic, and often empty.

Today, that network is gasping, fading under the weight of reforms and digital disruption, as smartphones, fintech platforms, and unified exchange rates quietly dismantle the empire that once thrived on scarcity, opacity and secrecy.

The spread that built an empire

The Aboki dollar market thrived because Nigeria’s foreign exchange system created the perfect imbalance. The Central Bank of Nigeria (CBN) operated multiple exchange windows for importers, investors, and government transactions, which opened the door to one of the country’s most profitable games: round-tripping.

Here is what made the black market inevitable: Back in June 2016, banks sold dollars at ₦197. On the street, that same dollar was ₦350. This is not a typo.  Individuals and firms with access to the official rate, often through government contacts or banking connections, bought dollars cheaply, around ₦460 at the time, and resold them to street dealers for as high as ₦700. The profit margins were staggering.

Economists like Kabir Rabiu described this cycle as “a loophole turned into an industry”. The official forex windows meant to stabilise the market instead became a pipeline feeding the black market.

The Aboki were only the visible end of the chain, the ones holding cash at street corners. Behind them were powerful suppliers, brokers, and middlemen exploiting the gap between the CBN rate and the real market demand.

Reports from FMDQ and Nairametrics noted that by late 2022, Nigeria’s black-market rate was above ₦800 to the dollar, while the official rate hovered around ₦450. The difference did not just distort trade, it drained foreign reserves and fuelled inflation.

Round-tripping was the quiet heist

While the Aboki were the public face of the trade, they were never the real power. The real profits came from entities with privileged access to CBN allocations; these are businesses and individuals who could obtain dollars cheaply and sell them at a high price.

Round-tripping became so lucrative that even official forex meant for importers or manufacturers found its way back to the streets. The system fed itself until reforms and tighter monetary controls began to choke it out.

According to data from the CBN, Nigeria’s foreign reserves fell sharply between 2020 and 2023, partly due to speculative trading and unrecorded capital flight linked to the parallel market.

When the supply lines dried up, the Aboki market started going quiet.

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By mid-2023, the CBN started a major shake-up. The multiple exchange rates were scrapped and unified under the Investors and Exporters (I&E) window. It was a move long demanded by analysts who blamed multiple rates for corruption and speculation.

The unification narrowed the profit gap that had sustained round-tripping. Suddenly, those who had access to official forex had nothing left to sell on the side.

At the same time, technology began rewriting the rules. Banks upgraded their systems to allow Nigerians to make dollar payments directly from naira Mastercards or domiciliary accounts. Fintechs also made it easier to receive and spend foreign currency legally.

That shift was the beginning of the end. Nigerians who once queued at Wuse Zone 4 or called their “Aboki plug” now make international transactions with a few taps on their phones.

A report by Financial Derivatives Company observed that fintech-driven forex access was cutting the parallel market’s dominance faster than regulation alone ever could. Simply put, the Aboki’s phone was no longer the most powerful financial tool on the street; the smartphone was.

What is left now?

The black market has not completely died. In areas where bank branches are scarce or among people who still trust cash over apps, informal dealers move money quietly. When panic hits or forex supply tightens, rates still jump, and the whisper network activates.

But the era of Aboki dollar dominance is over. The days when every traveller, every importer, every parent with a child abroad knew exactly which street corner to visit are gone.

What happens next depends on whether the reforms hold. If the naira crashes hard again or the CBN returns to its old games of multiple rates and restricted access, the incentives that built the black market could return overnight.

But even if they do, the game has changed. People have apps now. Banks are more accessible. The infrastructure exists for legal alternatives. Going back to the street corner will be a choice, not a necessity.

The streets are quieter now. The dollars have gone digital. And somewhere, these former dealers are probably figuring out their next move.

Meiza Nigeria