The Nigerian naira came under significant pressure in March 2025, weakening further despite ongoing interventions by the Central Bank of Nigeria (CBN), according to a report by investment firm AIICO Capital Limited. Traditional Nigerian cuisine
The report indicated that the naira depreciated by approximately 3 percent during the month, sliding from ₦1,492.49/$ to ₦1,536.82/$, even as the CBN injected $668.8 million into the Nigerian Foreign Exchange Market (NFEM) in a bid to stabilise the local currency.
The CBN deployed around $669 million in foreign exchange interventions during the first quarter of 2025, aiming to protect the naira from further depreciation amid declining dollar inflows and heightened demand from offshore investors and domestic corporations. Despite these efforts, the naira remained under pressure as demand continued to outstrip supply.
The month began with the exchange rate at ₦1,510/$, and as demand persisted, particularly from foreign portfolio investors and local businesses, the pressure on the naira intensified. The parallel market reflected similar strain, with the naira dropping by ₦43.50 to close at ₦1,536.00/$.
Though the CBN’s mid-month interventions provided a temporary boost in liquidity, it was insufficient to balance the market, and the naira ended the quarter weaker. On a quarterly basis, the currency registered a modest depreciation at the NFEM window, while Nigeria’s external reserves declined to $38.31 billion.
In an additional effort to stabilise the parallel market, the CBN directed Bureau de Change operators to purchase $25,000 from authorised dealer banks at the official exchange rate. However, despite these measures, the country’s reserves retreated from a three-year high of $43 billion due to ongoing debt service payments and continued dollar sales.
The situation was further compounded by global economic instability, with President Donald Trump’s sweeping tariffs rattling markets and contributing to volatility, as stocks opened lower on Monday, April 7.
