The naira strengthened across foreign exchange markets on Monday after the Central Bank of Nigeria (CBN) injected $250 million into the official window, addressing a 15% drop in foreign exchange inflows. The previous week had seen the naira lose N3 per dollar transaction as supply tightened.
The CBN sale of $250 million to authorised dealer banks helped ease pressure in the currency market, pushing the naira up by 0.18% to ₦1,451.82/$ at the official window. During Monday’s trading, the naira touched an intraday high of ₦1,455 and a low of ₦1,450. In the parallel market, the naira rose to ₦1,477/$ as market sentiment improved across both official and informal FX channels.
Last week, mixed performances were recorded in both segments. The official rate depreciated slightly by 0.28% to ₦1,454.41/$1 from ₦1,450.42/$1, while the parallel market appreciated to ₦1,485/$ from ₦1,495/$. The spread between official and parallel markets narrowed to ₦30.59/$ from ₦44.57/$.
Analysts attributed the decline in inflows to a 15% drop in the Nigerian Foreign Exchange Market, from $844.7 million to $716.3 million week-on-week. Foreign portfolio investors accounted for 32.98% of inflows, exporters 30.84%, the CBN 17.36%, non-bank corporates 16.94%, while individuals and others made up the remainder.
Oil market developments also weighed on the naira last week. Brent crude fell 4.05% to $61.17 per barrel, hitting the lowest levels since October 2024, amid oversupply concerns and expectations that US output would peak at 13.61 million barrels per day by the end of 2025 before slightly easing in 2026. OPEC projected global oil consumption to rise by 1.4 million barrels per day in 2026, primarily in non-OECD markets. Geopolitical events, including the US seizure of a Venezuelan tanker and ongoing Ukraine conflict negotiations, had minimal impact on prices, reinforcing supply fundamentals as the key driver.
Brent crude has traded at a year-to-date average of $68.40 per barrel, 14.34% below 2024’s $79.85 average, while Bonny Light closed at $63.74, down 3.09% on the week.
 injected $250 million into the official window, addressing a 15% drop in foreign exchange inflows. The previous week had seen the naira lose N3 per dollar transaction as supply tightened.){kind=link}