The Nigerian naira recorded a mild decline against the United States dollar at the official foreign exchange market, closing at N1,375/$ amid growing concerns over renewed tensions in the Middle East and uncertainty across global financial markets.
According to the most recent data published by the Central Bank of Nigeria, the local currency dropped from its previous closing rate of N1,364/$ as investors responded warily to growing geopolitical risks and higher global demand for the U.S. dollar.
The News Chronicle reports that the pressure on the naira comes at a time when crude oil prices are rising once more, with Brent crude trading at more than $104 per barrel. Analysts claim that while rising oil prices could boost Nigeria’s foreign exchange earnings, they could also exacerbate inflation and increase pressure on local energy costs.
There was little trading activity in the official market throughout the session, with the naira fluctuating between N1,367/$ and N1,375/$. The dollar index stayed steady as investors turned to safer assets after fearing that tensions between Iran and the United States would last longer than expected.
The development comes as Nigeria’s external reserves continue their slight decline, fueling new worries regarding long-term exchange rate stability despite continuous reforms. The apex bank, however, remains optimistic that reserves could reach $51 billion by the close of 2026.
