Expert Predicts Naira To US Dollars As Israel-Iran Conflict Escalates

• Renewed hostilities between Israel and Iran have impacted global crude production, sending shock waves to the oil prices
• Amid the several strikes and counterstrikes, an expert has explained how it could impact Nigeria's economy and the fate of the naira
• Meanwhile, the naira started the week strong, continuing the upward trend with a slight appreciation at the NFEM

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The crisis in the Middle East has triggered several reactions, including a spike in global crude prices, a development which could strengthen the naira further.

Note that the naira opened the week strongly against the US dollar, appreciating to N1,543 by the close of trading on Monday, June 16.

Data from the Central Bank of Nigeria (CBN) shows that the apex bank fixed its Nigerian Foreign Exchange Market (NFEM) rate at N1,544.6264/$, up from N1,549.3511 it closed last week.

The N4 appreciation from last week was achieved without any injection of FX from the CBN.

Expert predicts naira appreciation

Mr. Olufemi Idowu, Partner at Kreston Pedabo, a professional audit and assurance firm, explained that due to the impact of the crisis on crude prices, the Nigerian government would see an increase in revenue.

The 2025 national budget was based on an oil price projection of $75 per barrel, and with prices now trading above $78 per barrel, Nigeria is at an advantage.

Idowu noted that if the government maintains stability in oil production from the Niger Delta and meets the OPEC quota, it can reap more benefits.

He said:

“If we are able to take advantage of the crisis in the Middle East, and increase our revenue, it would mean that we are earning more foreign exchange. This will help us to have stability of the naira as there wouldn’t be more pressure on the naira.”

Oil prices climb higher amid Israel-Iran conflict

According to Channels News, Nigeria’s crude oil blend, Bonny Light, was trading at $78.62 per barrel on Friday; the Saharan blend traded at $67.18, Girassol traded at $79.56, while the Arab Light traded at $65.72.

This price spike was triggered by the attacks and counterattacks between Israel and Iran, which disrupted oil supplies from the region that produces one-third of the world’s crude.

JP Morgan projects that the crisis could greatly impact the global crude market, with prices to hit the $120 to $130 range in the worst possible outcome.

If global crude prices rise to such heights, Nigeria could see major improvements amid increased government revenue and reduced pressure on the naira.

Iran fires new rounds of missiles towards Israel

In related news, the Israel Defense Forces have identified "missiles launched from Iran toward their territory on Monday, June 16, 2025.

The IDF warned members of the public to enter a protected space and remain there until further notice.

Legit.ng reported that there were sounds across northern Israel following another barrage of Iranian missiles.

Source: Legit.ng