Naira Drops Value Against Dollar as FX Demand Rises
The naira value dropped against the US dollar at the foreign exchange market due to increased demand for US dollars at the official window.
Data from the Central Bank of Nigeria (CBN) showed that spot fx rate was quoted at N1530.25 per greenback. Further details revealed that the transaction rate reached an intraday high of N1533 and briefly touched N1527 per dollar before it closed at N1531.
The exchange rate depreciated amidst rising external reserves, which printed higher at $37.638 billion at the beginning of the week, according to CBN Update, following a series of inflows.
Accretion into the nation’s external reserves has been fuelled by higher crude oil output in the recent past and the slowdown in CBN FX interventions.
Nigeria’s crude oil production recorded a modest recovery in June 2025 as the country met its Organisation of Petroleum Exporting Countries (OPEC) crude oil production quota for the first time in five months.
Based on the latest data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), average daily crude oil production (excluding condensates) rose by 3.6% to 1.51 million barrels per day (mbpd) from 1.45 mbpd in May.
The oil volume peaked at 1.54mbpd in January. With condensates included, average daily liquids output stood at 1.69mbpd as against 1.65 mbpd in May.
On stance to keep defending the naira, the Apex Bank appears to have scaled back dollar sales to authorised dealer banks via intervention sales in the second half of the year.
In the first six month, the authority defended the naira by $4.7 billion as the CBN stepped in to protect the naira due to foreign investors exit.
Capital outflow has reduced sharply but the risk has not gone away according to some analysts who spoke with MarketForces Africa in reaction to decline yield on government borrowing instruments.
The yield on treasury bills, FGN bonds and OMO have continued to decline, which could force some foreign portfolio investors to exit their positions if the trend persist. #Naira Drops Value Against Dollar as FX Demand Rises#
