In March 2025, the Nigerian naira depreciated by 2.4% at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window and by 2.6% in the parallel market, closing at ₦1,536.82/$ and ₦1,530.00/$ respectively.
This decline occurred despite the Central Bank of Nigeria’s (CBN) intervention, which involved the sale of $668.8 million to authorized dealers in an effort to stabilize the currency.
The depreciation was largely driven by increased demand pressures from foreign portfolio investors and local corporations.
Although the CBN’s interventions temporarily improved liquidity, the demand for foreign exchange continued to outstrip supply, leading to further weakening of the naira.
Analysts have expressed concerns that the cessation of the naira-for-crude initiative and ongoing global economic uncertainties may exacerbate the pressure on the naira in the near term.
