Naira Drops to N1530, CBN Injects Dollars to Ease Pressure
Rising demand for foreign payments increased at the Nigeria Foreign Exchange Market (NFEM), leading to a decline in the naira’s exchange rate value against the US dollar.
The most recent update on FX from the Central Bank of Nigeria (CBN) platform revealed a decline in the exchange rate to N1530.26 per US dollar at the official market, down from N1525 the day before.
In two days, the exchange rate retreated by N10, reflecting rising demand for dollars for foreign payments, analysts said, noting a $50 million FX injection to ease pressure. The spot rate at the parallel market close at N1535, trading at a stable rate from Thursday’s close due to stable US dollar demand on Friday.
FX data from the CBN platform revealed that the exchange rate hit an intraday high of N1535 per dollar and traded at N1516, its intraday low before closing at N1532. “NFEM rate is derived at Volume Weighted Average and stands as the official exchange rate for the day”, the CBN provides guidance for its daily FX quote.
External reserves continue its fresh uptrend, rising to $37.355 billion in the absence of FX interventions in the currency market, supported by inflows from various foreign sources, including the latest open market operations auction.
Elsewhere, the global oil market faces a precarious balance in H2 2025, with demand growth projections revised downward by the International Energy Agency (IEA) to 741,000 barrels per day (bpd) for 2025, far below pre-trade war estimates.
Non-OECD economies are expected to drive 86% of demand growth, while OECD demand declines by 120,000 bpd due to energy transition policies and economic stagnation.
The outlook for Nigeria’s oil and gas sector in the second half of 2025 is shaped by a complex interplay of global market headwinds, shifting supply-demand balances, and significant domestic reforms, Zedcrest Research said in a note.
The CBN will need stronger external reserves to defend the naira following the reactivation of the naira debit cards for offshore transactions. Analysts are of the view that the debit card usage for offshore payment will increase FX outflows in the second half of 2025.
Nigeria’s FX earnings or inflows from hydrocarbons face uncertainties as oil markets are expected to tip into moderate oversupply as OPEC+ seeks to regain market share.
Non-OPEC supply, led by the United States and Brazil, continues to expand, albeit at a slower pace than in previous years. This persistent supply growth, combined with subdued demand driven by lackluster global GDP growth and a plateauing Chinese economy, creates a challenging environment for price stability. #Naira Drops to N1530, CBN Injects Dollars to Ease Pressure First Holdco Sheds 4%, Market Value Drops to N1.2trn
