Naira Spot Rate Weakens as FX Payments Exceed Dollar Supply
The naira spot rate depreciated against the US dollar in the Nigerian foreign exchange market (NFEM) as international payments exceeded supply-side volume.
The spot FX rate weakened to N1362.0549 per dollar at the Central Bank of Nigeria (CBN) NFEW window, a moderate depreciation from N1360.5519 in the previous day.
Transactions at the official window were closed between N1360 and N1363.5000 per dollar during the trading session, reflecting slight demand pressure.
The naira has been fluctuating alongside FX liquidity in the currency market, with intermittent support from the Apex Bank to ensure stability.
In the parallel market, the naira appreciated to N1375 per dollar, according to channel checks. The local currency gained N5 on the day at the informal currency market in the absence of significant pressures.
The naira’s trading direction on Wednesday narrowed the gap between official and parallel market rates. Meanwhile, updated data from the Central Bank showed that foreign reserves surged further due to additional inflows from across sources.
Nigeria’s gross external reserves increased to $50.439 billion, its highest level since March 2026, reflecting sustained inflows from oil revenue and other FX sources.
Elsewhere, Oil prices jumped after the U.S. launched a fresh round of military strikes against Iran, stoking worries that the Iran war could drag on, disrupting energy supplies for longer.
U.S. crude oil futures for July rose 2.94% to $92.68 per barrel. Brent futures, the international benchmark, for August delivery gained 2.52% to $95.45 per barrel.
In a post on X, the U.S. Central Command said American forces had started “launching additional self-defense strikes today at 5:15 p.m. ET against multiple targets in Iran at the Commander in Chief’s direction.” The military said the operation was carried out “in response to Iran’s unwarranted and continued aggression.”
Iranian state media, meanwhile, reported that Tehran had carried out missile and drone attacks against U.S. vessels operating in the Strait of Hormuz.
The latest strikes followed comments from U.S. President Donald Trump earlier in the day warning that Washington would intensify its military response against Iran, as he continued to push Tehran toward reaching a deal with the United States.
Despite a fresh escalation in the U.S.-Iran conflict, Rystad Energy said Thursday that the oil market was better-positioned to absorb disruptions than in past crises, citing record U.S. crude exports, softer Chinese demand and alternative export routes that reduce reliance on the Strait of Hormuz.
The consultancy’s senior vice president Jorge Leon, however, warned that the chances of a near-term diplomatic breakthrough have diminished, leaving oil prices vulnerable to sharp swings as investors assess whether the latest hostilities will remain contained or evolve into a more prolonged conflict.
