The Nigerian currency, the naira, experienced a decline in value against the United States dollar within the foreign exchange marketplace, as the demand for dollars surpassed the available supply. Data from market sources revealed that the naira experienced a 0.16% reduction in value within the authorized trading platform, concluding at ₦1,530.52 per dollar.
Likewise, within the informal trading platform, it was exchanged at ₦1,580 per dollar, resulting in a disparity of ₦50 between the two exchange values. Notwithstanding continuous interventions by the Central Bank of Nigeria (CBN), which persists in providing dollars to banking institutions, the currency endures under pressure.
Since the commencement of the current year, the naira has sustained a degree of stability attributed to the CBN’s actions, a favorable current account surplus, and enhanced foreign capital inflows.
However, analysts caution that the currency could encounter difficulties should global crude oil values recede, impacting Nigeria’s foreign currency reserves and potentially escalating inflationary pressures.
Thus far, Brent crude valuations have decreased by 5.5% throughout this year owing to augmented global oil production and evolving fiscal policies. The United States has expanded its oil output, with the Energy Information Administration (EIA) adjusting its 2025 crude production forecast to 13.61 million barrels daily, increased from its previous estimate of 13.55 million barrels daily.
Simultaneously, OPEC+ has affirmed its determination to progressively lessen its voluntary production reductions of 2.20 million barrels daily commencing in April 2025. Experts posit that this action could precipitate further price reductions within the petroleum market.
