Currencies
The value of the naira reaches its peak in 2025 and approaches N1,500 on the black market.
The Nigerian naira is at its strongest level in the unofficial market this year amid improved market fundamentals and ongoing reforms by the Central Bank of Nigeria.
The naira buying price in the black market was quoted at N1,520/$ in the early hours of Tuesday in Nigeria’s business capital.
The price action highlighted increased participation in the Nigerian stock market despite a drop in Treasury bill yields and increased incentives for naira-denominated investments.
In addition, the CBN’s FX sale to BDC operators amid a drop in FX demand provided Naira bulls with enough ammunition to breach the N1,500/$ support line.
The Nigerian currency is experiencing a rare period of stability, one year after a precipitous decline against the dollar.
The naira lost 70% of its value against the US dollar since authorities loosened foreign exchange controls in 2023.
However, the Nigerian apex bank has enacted several forex interventions and policy measures to boost the naira’s value, such as strengthening rules for Bureau De Change operators and boosting dollar liquidity in the official market.
CBN Governor, Olayemi Cardoso, declared that there would be harsh consequences for any violations of the recently introduced Nigeria Foreign Exchange (FX) Code. He reaffirmed the Central Bank’s commitment to upholding ethical behavior and transparency in Nigeria’s foreign exchange market.
The Nigerian currency settled lower against the haven currency in the second trading session of the week amid high demand for the U.S. dollar in both the official and unofficial markets.
CBN data showed that the naira dipped by 30 basis points on Tuesday, settling at N1,532.94/$ in the Nigerian Foreign Exchange Market (NFEM) compared to N1,528.03/$ on Monday.
The local currency closed at N1,590/$ in the parallel market, lower than its closing settlement price of N1,575/$ on Monday.
The Nigerian currency faces uncertainty amid disruption in Nigeria’s crude exports. An explosion forced the closure of the Trans Niger Pipeline, a crucial oil route that transports crude from onshore oilfields to the Bonny export terminal. The Trans Niger Pipeline is one of two routes that export Bonny Light crude from Nigeria, with a daily capacity of roughly 450,000 barrels. Crude oil exports are Nigeria’s major FX earner
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