The Nigerian naira faced significant pressure in March 2025, continuing its decline despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency, according to a report by investment firm AIICO Capital Limited. The naira depreciated by about 3% during the month, falling from ₦1,492.49/$ to ₦1,536.82/$, even as the CBN injected $668.8 million into the Nigerian Foreign Exchange Market (NFEM) to support the local currency.
In total, the CBN deployed approximately $669 million in foreign exchange interventions during the first quarter of 2025 to protect the naira from further depreciation. This move came amid declining dollar inflows and increasing demand from both foreign investors and local businesses. Despite these efforts, the naira continued to struggle as demand outpaced supply.
The month began with the exchange rate at ₦1,510/$, and pressure on the naira grew due to continued demand, particularly from foreign portfolio investors and local corporations. The parallel market mirrored this strain, with the naira dropping ₦43.50 to close at ₦1,536.00/$.
Although mid-month interventions by the CBN temporarily boosted liquidity, they were not enough to balance the market, and the naira ended the quarter weaker. On a quarterly basis, the currency saw slight depreciation at the NFEM window, while Nigeria’s external reserves fell to $38.31 billion.
To stabilize the parallel market, the CBN instructed Bureau de Change operators to buy $25,000 from authorized dealer banks at the official exchange rate. However, Nigeria’s reserves declined from a three-year high of $43 billion, driven by ongoing debt service payments and continued dollar sales.
The situation was further complicated by global economic instability, with President Donald Trump’s new tariffs unsettling markets and contributing to volatility, which also caused stock prices to drop on Monday, April 7.