By, Springbewsng Media Limited March 20,2025

The Nigerian naira strengthened slightly against the U.S. dollar on Wednesday, appreciating by 0.16% to close at ₦1,530.52/$ from the previous rate of ₦1,532.93/$, according to data from the Central Bank of Nigeria (CBN).

Market Trends and Forex Stability

The naira traded within a range of ₦1,500/$ to ₦1,545/$, showing a lower peak compared to Tuesday’s session. However, at the parallel market, rates remained unchanged at ₦1,585/$, widening the spread between official and unofficial markets. Analysts at CardinalStone Research noted that this gap has narrowed to 3.07%, compared to 3.40% at the beginning of the week.

Experts attribute the relative stability of the naira to ongoing structural reforms and increased forex inflows, reducing dependence on CBN interventions.

Analysts’ Perspectives on Forex Reforms

Tilewa Adebajo, CEO of CFG Advisory, highlighted the changing landscape of Nigeria’s forex system. She explained that digital forex platforms are streamlining transactions, making it easier for Nigerians abroad to send money at official rates.

“The system has evolved positively, but many market players are yet to adjust. With more foreign inflows entering through digital platforms, supply is increasing. The parallel market and Bureau De Change operators need to adapt,” she noted.

Comercio Partners also praised the relative stability of the naira, noting that its position in the ₦1,450-₦1,550 range has helped curb rising import costs. However, they cautioned that sustained stability depends on policy consistency and steady forex inflows.

“One policy misstep, and we’re right back to square one,” Comercio’s investor note warned.

Oil Prices and Future Risks

Despite the current forex stability, analysts remain cautious due to the declining price of crude oil, Nigeria’s major foreign exchange earner.

• Brent crude prices have dropped by 5.5% year-to-date, driven by increasing global supply and shifting market policies.
• The U.S. Energy Information Administration has revised its 2025 crude production forecast to 13.61 mbpd, signaling potential oversupply.
• OPEC+ has also confirmed its plan to gradually unwind 2.20 mbpd in production cuts starting April 2025, further increasing oil supply.

With these developments, Nigeria’s forex stability remains vulnerable to external shocks, and analysts warn that the country must diversify its revenue sources to maintain long-term stability.