The naira continues to tread a volatile path as Nigeria’s foreign exchange market reflects deepening links between global oil dynamics and domestic monetary policy. Today, 8 May 2025, the Central Bank of Nigeria (CBN) reports marginal gains in official rates, while the black market shows a stubborn resistance, influenced by ongoing demand for foreign currency.
Official Market: CBN Interventions Hold the Line
According to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official rates stand at:
- USD/NGN: ₦1,615.00
- GBP/NGN: ₦2,080.00
- EUR/NGN: ₦1,750.00
These figures represent a modest appreciation, with the naira rising from ₦1,629.00/$ on 6 May. Analysts credit this to the CBN’s $197.71 million intervention last month, which helped offset pressure from heightened dollar demand.
However, external factors including rising global trade tensions and domestic energy costs continue to test the apex bank’s monetary resilience.
Parallel Market: Sentiment-Driven Rates Remain High
In contrast, the black market shows markedly higher figures, with traders quoting:
- USD/NGN: ₦1,605.00–₦1,620.00
- GBP/NGN: ₦2,070.00–₦2,150.00
- EUR/NGN: ₦1,740.00–₦1,825.00
In major forex hubs such as Wuse Zone 4 (Abuja), Victoria Ireland Lagos, Victoria Street Port-harcourt real-time rates depend heavily on volume and urgency. One trader reported ₦1,590.00 for the dollar, reflecting slight market relief amid expectations of increased forex inflows from crude sales.
Nonetheless, speculative trading and limited dollar liquidity continue to drive black market volatility rates have been known to fluctuate within minutes.
Oil and Gas Sector: Driving Currency Strength and Risk
OPEC+ and Crude Price Impact
The OPEC+ announcement on 5 May to raise oil production for June sent Brent prices tumbling to multi-year lows. As Nigeria earns over 80% of its foreign exchange from crude exports, the move puts downward pressure on the naira by threatening revenue.
Gas Sector Investment
Nigeria is also expanding its gas footprint, with the $5 billion NLNG Train 7 project nearing completion. The government’s focus on compressed natural gas (CNG) infrastructure may eventually ease pressure on petrol imports and support the naira through export diversification.
Macroeconomic Context: Inflation and Policy Realities
Nigeria’s economic terrain remains challenging. Inflation stood at 33.2% in March, with food prices surging despite the naira’s marginal appreciation.
On social media, users continue to express frustration. One post on X read, “Naira is gaining but food is not smiling.
What is the government doing?”CBN Governor Olayemi Cardoso insists reforms are under way to deepen financial inclusion and adopt market-driven FX models. Yet, unresolved issues like fuel subsidies and pipeline sabotage could limit the sector’s full potential to support naira recovery.
Currency Stability Tied to Energy Strategy
Today’s exchange rate snapshot underscores Nigeria’s reliance on oil for economic balance. While the official market shows cautious optimism, the black market’s volatility remains a stark reminder of underlying risks.
As crude revenues fluctuate and forex reserves strain, the path forward for the naira lies in strategic investments, policy discipline, and transparent currency reforms. Only then can Nigerians begin to see lasting strength in both their currency and cost of living.
