The naira remained largely stable on Tuesday at the official foreign exchange (FX) market, as the Central Bank of Nigeria (CBN) recorded its highest dollar sale in a week. Following trading at the Nigerian Foreign Exchange Market (NFEM), the naira dipped slightly by 0.2 percent. According to CBN data, the dollar was quoted at N1,602.63, up from N1,599.93 last Thursday. In the parallel market, the naira also held steady, closing flat at N1,610 per dollar. At the Nigerian Autonomous Foreign Exchange Market (NAFEM), inflows totaled $1.42 billion, up from $847 million the previous week, according to Coronation Merchant Bank Research. The CBN contributed 50.60% of the total inflow. Foreign Portfolio Investors (FPIs) made up 8.61%, non-bank corporates 25.14%, exporters 12.99%, and other sources 2.66%. Last week, the naira appreciated by 0.24% week-on-week at the official spot market, ending at N1,599.93/$. The one-month forward rate closed at N1,642.03/$, the three-month at N1,720.49/$, the six-month at N1,802.37/$, and the one-year forward rate settled at N1,979.27/$.

Nigeria’s broad money supply climbed to N114.22tn in March 2025, defying the Central Bank of Nigeria’s (CBN) aggressive monetary tightening, which included raising the Cash Reserve Ratio (CRR) to a historic 50 per cent. According to the CBN’s latest money and credit data, the March figure marks a 24 per cent year-on-year increase from N92.19tn in March 2024. On a month-on-month basis, the money supply rose by 3.2 per cent from N110.71tn in February. The surge in money supply was largely driven by a significant increase in net foreign assets, which jumped by 38.9 per cent to N45.17tn, suggesting robust capital inflows and potential gains from currency revaluation. However, net domestic assets fell by 11.7 per cent to N69.05tn, reflecting tighter liquidity in the local financial system. Despite the CBN’s efforts to contain inflation and limit liquidity through the world’s highest CRR, Nigeria’s monetary base continues to expand. The growth in money supply is likely supported by external factors such as rising foreign asset holdings and government borrowing, which may have outweighed the impact of domestic tightening. In the first quarter of 2025, M3 money supply rose by 2.8 per cent—from N111.11tn in January to N114.22tn in March. The CBN data also reveal that currency outside the banking system grew to N4.6tn in March, accounting for 91.9 per cent of the N5.00tn total currency in circulation. This marks a 26.7 per cent increase from N3.63tn recorded outside banks in March 2024, when the total currency stood at N3.87tn. This preference for cash has been consistent through Q1 2025, with N4.74tn (90.5 per cent) outside banks in January and N4.52tn (89.6 per cent) in February. The continued dominance of physical cash reflects deep-rooted structural challenges, particularly in Nigeria’s informal economy where access to banking and trust in digital systems remains limited. Despite ongoing campaigns for a cashless economy and financial inclusion, a large share of Nigerians continues to rely on cash. Economic pressures, infrastructure gaps, and behavioural tendencies—especially amid rising prices—have reinforced the preference for physical currency as a more immediate and flexible medium of transaction. Data from the National Bureau of Statistics show that headline inflation rose to 24.23 per cent in March from 23.18 per cent in February, with month-on-month inflation accelerating by 3.90 per cent.

The naira continued its decline against the dollar at the official foreign exchange market on Thursday, as the Central Bank of Nigeria cautioned Bureau de Change operators to adhere strictly to its anti-money laundering and counter-terrorism financing regulations. According to data from the Central Bank, the naira slipped slightly to N1,599.93 per dollar on Thursday, compared to N1,599.79 recorded on Wednesday. This reflects a marginal day-on-day depreciation of N0.14.

The Federal Government has unveiled plans to generate and distribute a minimum of 8,000 megawatts of electricity by the end of President Bola Ahmed Tinubu’s first term in 2027. Minister of Power, Adebayo Adelabu, disclosed this on Thursday at the sixth edition of the 2025 Ministerial Press Briefing Series in Abuja. Adelabu described the target as achievable, highlighting a 40 percent increase in power generation since the Tinubu administration took office. He noted that average daily power generation and distribution rose to 5,700MW in the last quarter of 2025, up from 4,100MW in the third quarter of 2023. “This indicates a growth of 1,600 megawatts, nearly 40 per cent, since we assumed office at the ministry,” Adelabu said. He traced the history of Nigeria’s power generation, noting that it took the country nearly 40 years — from 1984 to around 2022 — to grow from 2,000MW to 4,000MW. Meanwhile, the current administration has added 1,700MW within a year and a half, reaching a peak of 5,800MW in just over a year. “I came into office in August 2023, and within a short period, we have improved from a fluctuating average of 4,100MW to a sustained 5,800MW. “If previous administrations had consistently added 1,000MW annually since 1999, Nigeria would now have over 30,000MW,” he said. Adelabu attributed the progress to Tinubu’s strong backing and stated that if the current trajectory is maintained, the 8,000MW target by 2027 is achievable. “What we are saying is that past administrations had their own positives. But if they had been adding at least 1,000 megawatts of power since 1999, we’d be talking about 26,000 megawatts plus 2,000 plus 4,000. That would be about 30,000 megawatts of power in Nigeria today. But you cannot keep dwelling on the past. “It’s the way forward. Now that we have created a trajectory, if we sustain this trajectory, I can assure you that by the end of this administration in 2027, we should be able to generate and distribute no less than 8,000 megawatts of power,” he assured.

The Federal Government has slashed electricity supply to the junta-led Niger Republic by 42 per cent, reducing it from 80 megawatts to 46MW. This cut has caused a 30 to 50 per cent drop in Niger's electricity output, forcing the state-run utility, Nigelec, to implement rolling blackouts lasting several days, especially in the capital, Niamey. Niger’s Energy Minister, Haoua Amadou, disclosed this in an interview with AFP, following public complaints and growing reliance on solar energy. Nigeria had previously halted most electricity exports to Niger as part of ECOWAS sanctions after the military ousted President Mohamed Bazoum on July 26, 2023. Following Bazoum’s arrest by the Presidential Guard, the West African bloc imposed various measures, including a freeze on energy transactions. Although Nigeria has since lifted the suspension, the electricity supply remains restricted. Amadou confirmed that while Niger previously received 80MW, it now gets only 46MW — insufficient for its needs. Despite efforts to boost domestic power generation, Niamey continues to face scheduled outages, prompting citizens and businesses to increasingly adopt solar energy solutions.

The naira weakened to N1,620 per dollar in the parallel market yesterday, slipping from N1,618 on Tuesday. However, it strengthened in the Nigerian Foreign Exchange Market (NFEM), appreciating to N1,599 per dollar. According to data from the Central Bank of Nigeria (CBN), the indicative exchange rate dropped to N1,599 per dollar from N1,604 on Tuesday, marking a N5 gain for the naira. As a result, the gap between the parallel market and NFEM rates widened to N21 per dollar, up from N14 on Tuesday.

In a notable move, Dangote Petroleum Refinery has announced another reduction in the gantry price of Premium Motor Spirit (PMS), popularly known as petrol. The new price stands at ₦835 per litre, down from ₦865, reflecting a 3.5% decrease. This adjustment comes amid a recent drop in global crude oil prices, which have fallen to $64 per barrel from over $70 in recent weeks. The refinery had earlier cut its gantry price from ₦880 to ₦865 per litre, but oil marketers failed to pass the savings on to consumers. With a processing capacity of 650,000 barrels per day, Dangote Refinery remains a key player in shaping Nigeria’s energy sector.

The CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, has stated that the ongoing volatility in global oil markets is taking a toll on Nigeria’s economy. He noted that although declining petroleum product prices may favor consumers, the overall economic impact is detrimental for Nigeria, given its heavy dependence on oil exports. “As consumers, we are happy that the price is coming down, but…as a nation, it’s not good for our economy because our revenue inflow is also impacted,” Ahmed told State House Correspondents at the Meet-the-Press briefing series organised by the Presidential Communications Team at the Aso Rock Villa, Abuja, on Tuesday. “Most importantly, what is even destabilising the market is inconsistencies in the way the USA President Donald Trump also sends his policies. He moves today. Tomorrow, he reverses. So, it’s been challenging to predict the next level,” Ahmed explained. Farouk Ahmed highlighted a recent steep decline in oil prices—from $73 to $60 per barrel in a single day—as a clear example of how Nigeria’s revenue streams are being disrupted. He also pointed to domestic issues such as pipeline vandalism and declining production as factors worsening the crisis. His remarks come on the heels of OPEC’s latest report, which shows Nigeria’s oil output has dropped to around 1.4 million barrels per day. Adding to the uncertainty are former U.S. President Donald Trump’s aggressive trade policies, which have included sweeping tariffs on imports from multiple countries—especially China—and frequent threats of additional levies. These unpredictable moves have rattled global markets, shaken investor confidence, and disrupted supply chains, contributing to erratic commodity prices, including crude oil. Already sensitive to shifts in demand and geopolitical tensions, the oil market has become even more volatile. Tariff announcements have often driven oil prices downward due to fears of slowed global growth, while exemptions or policy reversals have occasionally sparked short-lived recoveries. Analysts warn that this instability complicates long-term planning for oil-reliant nations like Nigeria, where consistent crude prices are vital to economic stability.

The Federation Account Allocation Committee (FAAC) has disbursed N1.578 trillion as revenue generated in March 2025 to the federal, state, and local governments. This was disclosed by the Office of the Accountant-General of the Federation. The total distributable revenue comprises N931.325 billion from statutory sources, N593.750 billion from Value Added Tax (VAT), N24.971 billion from the Electronic Money Transfer Levy (EMTL), and N28.711 billion from exchange rate gains. Gross revenue for March stood at N2.411 trillion, with N85.376 billion deducted for collection costs and N747.180 billion allocated for transfers, interventions, and refunds. The gross statutory revenue received in March was N1.718 trillion—an increase of N65.422 billion compared to N1.653 trillion in February. VAT revenue declined slightly, with N637.618 billion generated in March, down from N654.456 billion in February, reflecting a drop of N16.838 billion. From the total distributable amount of N1.578 trillion, the Federal Government received N528.696 billion, states received N530.448 billion, and local government councils received N387.002 billion. An additional N132.611 billion was shared as 13% derivation to oil-producing states. Of the N931.325 billion statutory revenue, the Federal Government got N422.485 billion, states received N214.290 billion, local governments got N165.209 billion, and N129.341 billion was allocated as 13% derivation revenue. From the N593.750 billion VAT pool, the Federal Government received N89.063 billion, states got N296.875 billion, and local governments received N207.813 billion. Out of the N24.971 billion EMTL revenue, the Federal Government received N3.746 billion, states received N12.485 billion, and local governments got N8.740 billion. In terms of the N28.711 billion exchange difference revenue, the Federal Government received N13.402 billion, states got N6.798 billion, and local councils received N5.241 billion. A further N3.270 billion was disbursed to oil-producing states as derivation. Meanwhile, revenues from Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) saw notable increases in March. However, there were declines in receipts from Oil and Gas Royalty, VAT, EMTL, Excise Duty, Import Duty, and CET Levies.

The naira strengthened yesterday in the parallel market, appreciating to N1,618 per dollar from N1,620 on Monday. However, it weakened in the Nigerian Foreign Exchange Market (NFEM), where it fell to N1,604 per dollar. Data from the Central Bank of Nigeria (CBN) showed the indicative exchange rate climbed to N1,604 from N1,599, reflecting a N5 depreciation. As a result, the gap between the parallel market and NFEM rates narrowed to N14 per dollar, down from N21 on Monday.