Naira Weakens As Total FX Inflows Drop To $751.70m

The naira depreciated on Monday as total foreign exchange (FX) inflows into Nigeria fell to $751.70 million, down from $787.50 million recorded the previous week, despite interventions by the Central Bank of Nigeria (CBN).

Data from the CBN showed that the official exchange rate closed weaker at N1,536.43/$1, compared to N1,535.03/$1 on Friday. The spot rate reached an intraday high of N1,537/$1, reflecting sustained demand pressures in the official window.

In the parallel market, the naira fell more sharply, losing 0.65 percent week-on-week to close at N1,550/$1, as demand outpaced supply in the absence of strong FX support.

To stabilize liquidity, the CBN sold $50 million to banks and offered OMO securities at a spot rate of 25.99 percent for 124-day maturities, a move analysts say is aimed at attracting offshore inflows and keeping them longer in the market.

Breakdown of the inflows showed that exporters contributed $216.10 million, non-bank corporates added $203.90 million, foreign portfolio investors (FPIs) brought in $175.60 million, CBN accounted for $137.40 million, while individuals and other sources made up less than 2.5 percent.

Despite the dip in weekly inflows, Nigeria’s external reserves rose to $41.11 billion as of Friday. Analysts at Coronation Merchant Bank said they expect the naira to trade within its current range in the near term, supported by steady FX inflows and CBN intervention.

Meanwhile, crude oil prices climbed amid renewed geopolitical risks. Brent crude gained 2.08 percent week-on-week to close at $67.22 per barrel, while Bonny Light traded higher at $69.32, maintaining a premium over Brent.

Oil markets were rattled after Russia launched an airstrike near Ukraine’s EU border, while Ukraine retaliated by targeting a Russian refinery and the Unecha pumping station on the Druzhba pipeline—key to Russian oil flows into Europe. Analysts warned that if the disruption escalates, crude prices could trend higher in the coming days.