The naira fell 2.31% on Monday at the National Autonomous Foreign Exchange Market (NAFEM), closing at ₦1,690.37/$, down from ₦1,652.25/$ the previous week. Turnover dropped by 42% to $173.14 million, reducing dollar supply. Meanwhile, the parallel market saw minor gains for the naira, strengthening to ₦1,735/$ from ₦1,740 in the last trading session.
Despite a brief appreciation last week, analysts project continued volatility for the naira in 2025 due to Nigeria’s failure to meet its OPEC crude oil production quotas and limited foreign exchange inflows. Veriv Africa’s report also noted that high inflation and poor export performance are likely to exacerbate the naira’s struggles, calling for a shift in monetary and fiscal policies to stabilize the currency.
The report urged the Central Bank of Nigeria (CBN) to adopt collaborative, productivity-focused strategies rather than relying solely on monetary tightening. It also highlighted the need for investments in non-oil sectors, improved infrastructure, and export promotion to enhance Nigeria’s economic resilience and boost foreign exchange earnings.
