The Nigerian naira came under significant pressure in March 2025, weakening further despite continued interventions by the Central Bank of Nigeria (CBN), according to a report by investment firm AIICO Capital Limited.
The report showed that the naira depreciated by about 3% during the month, slipping 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 currency.
During Q1 2025, the CBN deployed around $669 million in foreign exchange interventions to shield the naira from further losses amid falling dollar inflows and increased demand from both offshore investors and local businesses. However, these efforts fell short as demand continued to outweigh supply, keeping the currency under pressure.
The month opened with the exchange rate at ₦1,510/$, but persistent demand—especially from foreign portfolio investors and domestic firms—exerted further strain. The parallel market mirrored this pressure, with the naira losing ₦43.50 to close at ₦1,536.00/$.
Although the CBN’s mid-month interventions temporarily boosted market liquidity, they weren’t enough to restore balance. As a result, the naira ended the quarter weaker at the NFEM window, while Nigeria’s external reserves dropped to $38.31 billion.
To ease pressure on the parallel market, the CBN instructed Bureau de Change operators to buy $25,000 from authorised dealer banks at the official rate. Yet, despite these efforts, Nigeria’s reserves fell from a three-year high of $43 billion, weighed down by ongoing debt service payments and sustained dollar sales.
Adding to the pressure was global economic uncertainty, as sweeping tariffs announced by President Donald Trump unsettled markets and led to a downturn in stocks on Monday, April 7.
