Naira Declines Versus USD, CBN $150m FX Injections Thin Out
The forex market value of the Nigerian naira depreciated for the third consecutive trading session as the US dollar volume available at the supply side thinned out.
The Central Bank of Nigeria (CBN) FX report showed that the spot rate depreciated to N1471.0892 per dollar, reflecting an imbalance between US dollar demand and supply in the forex market.
The official rate opened in October at N1,455.2373, and since then, the spot rate has been on a declining trend versus the greenback in the absence of FX intervention.
The FX rate touched an intraday high of N1477 per dollar on Tuesday, confirming demand pressures in the currency market when compared with N1475 spot rate posted at the beginning of the week.
MarketForces Africa reported that total FX inflows into the currency market declined last week. In a note, Coronation Merchant Bank research unit reported that activity levels moderated as FX inflows declined to US$835.60 million versus US$1.18 billion in the prior week.
In Sept, the Naira traded largely stable, supported by improved FX inflows and CBN interventions. Trading opened within the ₦1,531–₦1,522/USD range, underpinned by consistent dollar supply from foreign portfolio investors, exporters, and the CBN’s intervention.
The CBN defended the naira with $150 million FX sales intervention to keep the local currency strong – with sustained accretion into external reserves boosting confidence.
In the energy sector, data from the CBN shows that domestic oil production averaged 1.6 million barrels per day (mbpd) in August, supporting the accretion into the external reserves.
This performance indicates that Nigeria consistently met and slightly exceeded its OPEC quota of 1.5 mbpd, reflecting a sustained recovery in output driven by reduced crude theft and pipeline vandalism.
Notably, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported a significant drop in daily crude oil losses to 9,600 bpd—over 90% lower than the 102,900 bpd recorded in 2021.
On the price front, Bonny Light crude averaged $73.18 per barrel, slightly below $73.50 in the previous month but higher than $65.90 in May, reflecting the influence of global supply-demand dynamics, OPEC+ production decisions, and geopolitical disruptions.
Crude oil exports also improved, holding steady at 1.06 mbpd in both June and July, compared with 1.00 mbpd in May. Foreign reserves climbed to $42.544 billion on Monday, from $42.353 billion at the end of September, 2025. Gold Hits Historic High of $4,000 on Global De-dollarisation
