The Naira suffered a significant loss in the parallel market, closing at N1,630/$1 on Friday, May 30, 2025, after several days of relative stability at N1,620/$1, according to data from Nairametrics Research.
The local currency also weakened against the British pound, closing at N2,190/£1 on Friday, compared to N2,170/£1 on Thursday and N2,165/£1 on Wednesday—highlighting a consistent depreciation trend throughout the week.
In contrast, the previous week saw the Naira appreciate in the parallel market, rising to N1,620/$1 on Thursday from N1,625/$1 on Wednesday, maintaining that level from Tuesday.
It had earlier closed at N1,627/$1 on Monday, according to market sources in Lagos.
Against other major foreign currencies, the Naira showed mixed performance. It gained against the pound sterling, appreciating to N2,135/£1 on Thursday, up from N2,155/£1 on Wednesday and N2,145/£1 on Tuesday. The week had opened at N2,142/£1. However, against the euro, the Naira declined to N1,835/€1 on Thursday, from N1,820/€1 on both Monday and Wednesday, though it slightly improved from Tuesday’s N1,825/€1.
Official market performance
In the official market, the Naira showed a mixed trend. It closed at N1,585.5/$1 on Friday, a modest appreciation from N1,587/$1 on Thursday.
Central Bank of Nigeria (CBN) data indicates that the currency closed at N1,592/$1 on Wednesday, slightly down from N1,590/$1 on Tuesday, and opened the week at N1,583/$1 on Monday.
Global oil prices add pressure on the Naira
Adding further pressure on the Naira, the Organization of the Petroleum Exporting Countries and its allies (OPEC+), the world’s largest oil producers, announced a planned increase of 411,000 barrels per day in production for July 2025.
In an official statement on Saturday, OPEC+ reaffirmed: “In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on December 5, 2024, to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from April 1, 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day in July 2025 from the June 2025 required production level.”
According to Nairametrics Research, this increase could suppress global oil prices if demand growth underperforms or inventories remain stable—posing further risk to Nigeria’s foreign exchange earnings and increasing pressure on the already volatile naira.
What you should know
The African Development Bank (AfDB) has projected that the Nigerian Naira will depreciate by at least 6% between 2025 and 2026, attributing this to growing volatility in global financial markets.
The forecast, contained in the African Economic Outlook 2025, reveals the potential instability of African currencies amid global economic uncertainty.
This projection comes just a week after CBN Governor Olayemi Cardoso claimed that volatility in Nigeria’s foreign exchange (FX) market had dropped to below 0.5%, suggesting improved market conditions—a claim now challenged by recent market realities.
