The Nigerian naira appreciated across both official and parallel markets on Wednesday, buoyed by rising foreign inflows and a lull in FX pressures from the Central Bank of Nigeria (CBN).
At the official window, the local currency closed at ₦1,596.70 per US dollar, strengthening by 21 basis points, while in the parallel market, it traded at ₦1,615.00 per dollar. The narrowing gap between both markets reflects enhanced liquidity and reduced speculative demand.
Analysts credited the appreciation to sustained inflows from foreign portfolio investors and exporters, as well as a noticeable reduction in Central Bank FX interventions. Trading at the Nigeria Foreign Exchange Market (NFEM) remained steady, with the USD/NGN pair fluctuating within a tight band of ₦1,595 to ₦1,600.
Sentiment in the foreign exchange market was further supported by a modest increase in Nigeria’s external reserves, which rose to $38.217 billion. The Central Bank disclosed that the increase was largely attributed to proceeds from a newly introduced crude oil stream named “Obodo.”
Launched in May 2025, the Obodo crude blend adds to Nigeria’s extensive crude oil export portfolio as the 27th official stream. With its medium-sweet properties, it is expected to attract strong international demand, adding depth to Nigeria’s export capacity alongside Bonny Light, Forcados, Qua Iboe, and other premium grades.
Despite optimism in Nigeria’s currency space, global oil prices slipped on Wednesday after data revealed a surprise build in U.S. crude stockpiles, sparking fears of oversupply. Brent crude dropped by 40 cents to $66.23 per barrel, while West Texas Intermediate (WTI) slid by 33 cents to $63.34 per barrel.
Gold also suffered significant losses, falling over 2% as positive trade sentiment and renewed investor risk appetite reduced the demand for traditional safe-haven assets. Spot gold declined to $3,180.29 an ounce—its lowest in over a month.
Market analysts caution that oil price volatility is likely to persist despite OPEC’s revised production outlook, citing lingering concerns over external output levels and global economic dynamics.
