The Nigerian currency witnessed another challenging week in the foreign exchange market as intensified demand for the US dollar exerted pressure on supply, leading to a decline in the naira’s value across both official and unofficial trading windows
According to market records, despite the Central Bank of Nigeria’s (CBN) latest intervention of $50 million to ease liquidity constraints, the local currency failed to hold ground. Data from the official FX market showed that the naira dipped by 0.11% on a weekly basis, closing at ₦1,530.26 against the US dollar. Analysts attributed this movement to tightening liquidity conditions and persistent dollar demand from importers and corporates.
In the parallel segment of the market, the pressure was more pronounced. Reports from Cowry Asset Management revealed that the naira slid by 0.97%, settling at an average of ₦1,545 per dollar compared to the previous week’s ₦1,530/$1. The depreciation reversed part of the naira’s recent rebound, highlighting the volatility that still grips Nigeria’s currency markets.
Cowry Asset stated in its weekly commentary that while the Central Bank continues to make strategic interventions to stabilize the currency, the widening gulf between demand and actual FX availability remains a core concern. However, the ongoing reforms aimed at liberalizing the forex framework are being viewed as a step toward medium-term currency stability.
Globally, commodity markets reflected cautious optimism as oil prices experienced a modest uptick. The market responded positively to the White House’s decision to postpone a widely anticipated tariff implementation, which had previously sparked fears of a decline in global oil demand. Brent crude futures hovered around the $70 mark, buoyed further by speculation surrounding an upcoming announcement from US President Donald Trump concerning Russia.
In local markets, Nigeria’s Bonny Light crude recorded a gain, rising to $72.81 per barrel from $72.07 the previous week. The marginal improvement in oil prices, coupled with strengthened export flows, contributed to a 0.47% increase in Nigeria’s foreign reserves, now standing at $37.36 billion.
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC), in its latest World Oil Outlook for 2025, projected a bullish long-term demand trend. The forecast sees global oil consumption reaching 122.9 million barrels per day by 2050, with emerging markets in Africa, India, and the Middle East expected to drive the surge.
Looking ahead, analysts at Cowry Asset anticipate a more favourable performance for the naira in the coming days. They noted that steady inflows from oil exports, deepening FX reforms, and consistent CBN support are likely to set the tone for an eventual recovery of the local currency and improved investor sentiment.
