Naira Trades at New Rate as Dollar Demand Rises in FX Market

Naira Trades at New Rate as Dollar Demand Rises in FX Market

  • The Nigerian currency, the naira, has dropped its value against the dollar in the official foreign exchange market
  • The naira depreciated following heightened forex demand and decreased intervention by the Central Bank of Nigeria (CBN)
  • On the flip side, Nigeria’s crude oil production surged past its assigned OPEC quota in June 2025

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The naira’s value dropped against the US dollar at the foreign exchange market following increased demand for forex at the official window.

Central Bank of Nigeria’s (CBN) data shows that the FX rate was quoted at N1,530.25 per dollar.

The naira depreciates in the official market again
Rising dollar demand devalues the naira to a new low in the official FX market. Credit: Novatis/Stringer
Source: Getty Images

The naira depreciates, reserves rise

Further data shows that the transaction rate hit an intraday high of N1,533 and a low of N1,527 per dollar before closing at N1,531.

The forex rate depreciated as foreign exchange reserves rose, hitting $37.638 billion at the beginning of the week.

Accretion into Nigeria’s reserves has been caused by higher crude oil output recently and a slowdown in CBN’s FX interventions.

Crude oil output rises above OPEC quota

A prior report by Legit.ng disclosed that Nigeria recorded a crude oil production increase, which exceeded the quota assigned by the Organisation of Petroleum Exporting Countries (OPEC), the first time in seven months.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NMDPRA) shows that Nigeria’s daily crude oil output rose by 3.6% to 1.51 million barrels per day, from 1.45 million barrels per day in May.

Reports say Nigeria's crude oil volume plateaued at 1.54 million barrels per day in January.

When added to condensates, Nigeria’s daily crude outputs stood at 1.69 million barrels per day, relative to 1.65 million barrels per day in May.

CBN eases forex intervention sales

Market Forces Africa reported that the CBN appears to have eased forex sales to authorised dealers through intervention sales in the second half of the year.

According to the report, in the first part of the year, CBN defended the naira with $4.7 billion as it stepped in to shield the naira due to foreign investors’ exit.

The naira loses value amid increased dollar demand from FX dealers
Hope rises for the naira as Nigeria's crude oil production surges past OPEC quota. Credit: Picture Alliance/Contributor
Source: Getty Images

Capital outflow has also thinned sharply, but the risk remains, analysts say.

The yield on treasury bills, both FGN bonds and OMO auction, has continued to decline, which could force some foreign portfolio investors (FP1s) to exit if the trend continues.

Analysts predict new exchange rate for the naira

Legit.ng earlier reported that the naira may slide to N1,700 per US dollar by the end of 2025, according to a new H2 economic outlook by Cordros Securities.

This would represent a 9.5% drop from current rates and highlights Nigeria's ongoing currency vulnerability, despite efforts by the Central Bank of Nigeria (CBN) to stabilise the market.

The Cordros report, however, acknowledges that recent FX reforms and stronger reserve buffers have mitigated more severe devaluation.

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Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng