The Nigerian naira lost ground against the US dollar on Tuesday, despite an attempt by the Central Bank of Nigeria (CBN) to bolster liquidity through a $50 million foreign exchange intervention.
CBN data revealed that the Nigerian Foreign Exchange Market settled at N1,602.63 per dollar, down from the opening rate of N1,599.93. Throughout the day, trading in the official FX window saw the naira-dollar rate fluctuate between N1,598.50 and N1,610.00. By the close of the session, the local currency had depreciated by 17 basis points, finalizing at N1,602.6318 per dollar.
The CBN’s intervention, which involved the sale of $50 million within a price range of N1,598.85 to N1,605.00, was not enough to reverse the weakening trend. Financial analysts have raised concerns about the continuous deployment of FX sales to stabilize the naira, warning of its implications for Nigeria’s external reserves.
According to the latest figures from the CBN, the country’s foreign reserves have dropped by about $3 billion since the start of 2025, hitting a six-month low of $37.88 billion. The apex bank has maintained its role as the major source of FX supply across various segments of the forex market, amid increasing demand from companies and investors repatriating funds abroad to fulfill legitimate obligations.
During the previous week, the Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded an impressive FX inflow of $1.42 billion, marking a 68% increase from the $847 million reported the week before.
A breakdown of contributors to the FX inflow showed that the CBN accounted for 50.60% of the total volume, followed by foreign portfolio investors (FPIs) at 8.61%, non-bank corporates at 25.14%, exporters at 12.99%, and other sources contributing 2.66%.
Elsewhere in the global commodities market, oil prices rebounded sharply on Tuesday. Brent crude futures rose by $1.15, or 1.7%, to settle at $67.41 per barrel, while the U.S. West Texas Intermediate (WTI) contract for May delivery—set to expire Tuesday—gained $1.24, or 2%, to reach $64.32 per barrel. This recovery was fueled by fresh U.S. sanctions on Iran and a general uptick in global equities.
Gold also extended its upward momentum, breaching the $3,500 mark amid heightened demand. The surge was driven by a weakening U.S. dollar, anxiety over trade policies, and renewed criticism of the U.S. Federal Reserve by President Donald Trump.
Spot gold was stable at $3,425.91 after reaching an earlier peak of $3,500.05. U.S. gold futures edged up 0.4% to close at $3,438.40 per ounce.
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