Naira Exchange Rate Holds Steady in Black Market Despite Oil Pipeline Explosion – Latest Updates”
Written by SpringnewsNG Media Limited, March 19, 2025.
The naira remained stable in the black market on Wednesday despite concerns that the recent oil pipeline explosion could impact the exchange rate. In the parallel market, the naira saw a slight depreciation of about N1, with the dollar quoted at an average rate of N1,579 on Wednesday compared to N1,580 on Tuesday. In certain areas of Lagos, the dollar was exchanged at N1,575 per dollar, while some traders offered it at rates of N1,577 and N1,580.
Against other major currencies, the naira gained N10, as the Pound was quoted at N2,040 on Wednesday, the same as on Tuesday, and slightly stronger than Monday’s rate of N2,050. The local currency also traded at N1,710 per Euro on Wednesday, compared to N1,700 per Euro on Tuesday. Meanwhile, the Canadian dollar remained steady at N1,150, while the Chinese Yuan traded at N1,215 in the black market.
A recent explosion on the Trans-Niger Pipeline, one of Nigeria’s most critical oil pipelines, led to significant disruptions and raised concerns over environmental and economic implications. The explosion resulted in a temporary shutdown of the pipeline, affecting crude oil transportation and fueling worries about potential impacts on the nation’s foreign exchange earnings.
However, operations on the pipeline have now resumed after a temporary shutdown due to the explosion and fire, easing fears that the incident would negatively affect the naira. The stability of the local currency suggests that market confidence remains intact despite the temporary disruption in oil production.
Financial analysts suggest that while the naira’s exchange rate has remained relatively steady in the black market, continued pressure on Nigeria’s foreign reserves and fluctuating crude oil prices could influence future currency movements. For now, the swift resumption of pipeline operations has helped mitigate immediate concerns over potential currency devaluation.
