Nigeria’s naira remained stable against major foreign currencies on Tuesday, holding ground in a volatile global market marked by inflation concerns and tightening monetary policies across key economies.
As of May 20, 2025, the Central Bank of Nigeria (CBN) set the official exchange rates as follows:
- ₦1,610.97 to a US dollar
- ₦2,151.32 to a British pound
- ₦1,809.10 to a euro
The naira’s performance signals a momentary pause in the depreciation trend that has characterized much of Q1 2025, with analysts citing marginal improvements in oil revenues and enhanced FX liquidity as contributing factors.
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Market Reaction
Currency traders in Lagos and Abuja reported relatively quiet trading activity on the day, attributing the stability to the CBN’s continued interventions and dollar inflows from recent crude oil sales.
“We’re seeing more predictability in the FX window this week,” said Michael Adedeji, a senior currency dealer at Ecobank. “But the long-term pressure on the naira remains due to demand-side imbalances and low foreign direct investment.”
Economists warn that while today’s figures suggest a moment of calm, the underlying economic fundamentals remain fragile. The naira has depreciated nearly greatly since January, driven largely by dollar scarcity, external debt repayments, and high import demand.
With Nigeria’s inflation rate currently hovering near 23.6%, further currency pressure could have implications for food prices and energy costs in the months ahead.
