Naira Rebounds as CBN Injects Dollar into FX Market
The naira rebounded after two days of losses and closed the week at N1532 per US dollar in the Nigerian foreign exchange market (NFEM) on Friday as demand pressures eased following the Central Bank FX intervention.
During the week, the official exchange rate worsened from N1518 to N1533 as daily logs showed demand for dollars outpaced forex market liquidity. To stem the tide, the Central Bank conducted FX intervention sales to authorised dealer banks to strengthen the supply side.
The authority injected $80 million to suppress rising FX demand from eligible market players.
Hence, the naira closed the trading week at N1,532.34 to the U.S. dollar at the official market. According to data released on the Central Bank of Nigeria’s official website, the naira gained 77 kobo against the dollar.
This represents a 0.05 percent gain when compared to the trading figure of N1,533.11 per dollar recorded at the close of trading on Thursday. The local currency, which recorded steady appreciation the previous week, also opened the new trading week on Monday, July 14, 2025 with an N11.37 gain against the dollar.
Elsewhere, Nigeria’s gross external reserves increased for the second consecutive week, growing by USD422.16 million week on week to USD37.85 billion amidst rising crude oil production.
Based on the data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s crude oil production (including condensates) rose to a five-month high in June, rising by 2.4% month on month to 1.70 million barrels per day (mbpd)
The increase was driven by higher output from the Forcados terminal, up by +9.5% month on month; Odudu climbed by +9.0%, Qua Iboe output surged by +2.3%, and Bonny grew by 1.0%.
Conversely, production declined at the Brass (-15.0% m/m), Agbami (-14.6% m/m), Escravos (-8.7% m/m), and Tulja–Okwuibome (-4.5% m/m) terminals. Overall, average crude oil production increased by 11.3% year on year to 1.68 mbpd in the first half of 2025 as against 1.51 mbpd in the first half of 2024.
Although investment momentum is gradually improving, lingering underinvestment continues to constrain production efficiency and contribute to intermittent fluctuation in output. “We expect that improved security conditions and sustained investment efforts will support average production levels above 1.60 mbpd.
“Thus, we retain our projection of average crude oil production (including condensates) at 1.70 mbpd in 2025—below the federal government’s target of 2.06 mbpd,” Cordros Capital Limited said in a note. #Naira Rebounds as CBN Injects Dollar into FX Market Exchange Rates Gap Collapses as Naira Falls to N1,533
