The Nigerian naira depreciated by approximately 3% in the first quarter of 2025, sliding from ₦1,492.49 to ₦1,536.82 against the US dollar in the official market, despite the Central Bank of Nigeria (CBN) injecting $668.8 million to stabilize the currency.
According to a market report, the naira faced sustained pressure due to high demand in the Nigerian Foreign Exchange Market (NFEM), particularly from foreign portfolio investors and local corporations. The parallel market mirrored this decline, with the exchange rate weakening to ₦1,536.00 per dollar.
The CBN’s dollar sales provided temporary liquidity relief but failed to fully offset market demand. External reserves also dropped to 38.31 billion, reversing from a three-year high of 43 billion, partly due to debt servicing and continued FX interventions.
In a bid to stabilize the unofficial market, the CBN directed Bureau de Change (BDC) operators to purchase $25,000 weekly from authorized dealer banks at the official rate. However, global financial volatility, including market reactions to former U.S. President Donald Trump’s new tariffs, further strained currency stability.
Analysts note that while the CBN’s measures have moderated extreme volatility, sustained dollar inflows and improved foreign investment remain crucial for long-term naira stability.
