Naira Rallies Ease Corporate Foreign Payments Burden
The naira appreciation has continued to reduce the non-bank corporate international FX payments burden, with the Central Bank of Nigeria (CBN) boosting the supply side.
Companies and other FX market participants with FX liabilities have had their burden reduced sharply as they continue to settle obligations at lower naira equivalents.
Elsewhere, FX movement has reduced Nigerian banks’ gains and hurt earnings growth. The naira gained 7.5% in 2025, according to CardinalStone Partners Limited – the first time in 13 years the exchange rate will favour market participants.
On Tuesday, The Naira sustained its positive trading activities for the fourth consecutive session to appreciate by N10.24 at the Nigerian Foreign Exchange Market (NFEM) window to close at ₦1,419.07 per USD.
The uptick was driven by inflows from Foreign Portfolio Investors (FPIs). Notably, the naira traded within a range of ₦1,426.00 and ₦1,414.00 per USD during today’s session. External Reserve printed at $45.61 billion, reflecting a $40.75 million day-on-day gain.
The CBN projects external reserves to rise to $51.04 billion in 2026, supported by sustained FX reforms, stronger capital inflows, and improved external balances, even as fiscal pressures and global risks remain key watch points.
In the global commodity market, oil prices fell slightly as the market weighed expectations of ample global supply this year against uncertainty around Venezuelan crude supplies after the U.S. capture of Nicolas Maduro, the South American country’s leader.
Brent crude shed 69cents or 1.12%, to $61.07 per barrel, while U.S. West Texas Intermediate (WTI) lost 79cents or 1.35%, to $57.53. Conversely, gold extended gains on Tuesday.
The uptrend was buoyed by safe-haven demand after the U.S. capture of Venezuela’s president fuelled global tensions, while investors awaited U.S. payroll data for insights into the Federal Reserve’s interest rate policy.
The spot gold price climbed 0.90% to $4,488.72/oz, while U.S. gold futures rose 1.08% to $4,499.50/oz. Investment firm AIICO Capital Limited expects precious metals like gold to remain supported by safe haven demand and Fed rate-cut expectations, while oil prices may stay under pressure from ample global supply and the prospect of increased Venezuelan output. Ecobank Nigeria Settles $300m Eurobond Ahead of Maturity
