The Central Bank of Nigeria (CBN) has authorised commercial banks and dealers to sell foreign exchange freely at a rate set by the market.
The change allows banks to freely influence and determine the naira to dollar value.
The development is in line with the commitments that President Bola Tinubu made upon being sworn in on May 29.
During his inauguration, Mr Tinubu promised a single foreign exchange rate regime.
The president insinuated that he would direct the CBN to strive toward a single exchange rate.
He claimed that a unified exchange rate would divert capital away from arbitrage and toward significant investments in facilities, equipment, and jobs that power the real economy.
Before now, the World Bank and other multilateral lending organisation had during the Muhammadu Buhari regime, warned the CBN about the negative consequences of multiple currency rate on the economy and how the situation was scaring away investors