Naira appreciates to N1,580 against dollar amid oil market uncertainties
The naira opened Friday’s trading session at N1,580/$ in the parallel market, appreciating slightly from N1,590/$ on Thursday, despite a stronger U.S. dollar in the global financial market.
However, economic fundamentals suggest the Nigerian currency remains vulnerable. The naira’s value is heavily tied to crude oil earnings, and concerns over weak global demand, U.S. trade tensions, and OPEC+ production quota increases continue to exert pressure on Nigeria’s foreign exchange reserves.
Analysts warn that unless Nigeria diversifies its foreign exchange sources and strengthens economic policies, the naira may struggle to maintain stability amid external economic shocks.
The relative stability of the Nigerian naira in the first quarter of 2025 has played a key role in reducing the country’s inflation rate, recent data from the National Bureau of Statistics (NBS) has shown.
According to the NBS, Nigeria’s inflation rate moderated to 23.18% in February, down from 24.48% in January, marking the first slowdown in inflation this year. The decline was attributed to lower energy prices, a stable naira, and the rebasing of Nigeria’s inflation index.
