Market News

By Philip Shimnom Clement

The naira closed trading in 2025 on a firmer note, appreciating to N1,435 per US dollar at the official foreign exchange market, supported by Nigeria’s gross external reserves of about $45.49 billion.

Data from the Central Bank of Nigeria (CBN) showed that the local currency gained 0.69 per cent to close at N1,435.76/$ at the official window during the final trading session of the year.

The improved performance was underpinned by sustained CBN intervention in the foreign exchange market, which helped cushion the impact of reduced dollar inflows toward year-end.

Market analysts noted that foreign exchange inflows into the market weakened sharply in the fourth quarter, prompting increased CBN support. According to Coronation Merchant Bank Limited, FX inflows recorded a steep 95 per cent week-on-week decline, while the apex bank funded significant outflows to maintain market stability.

In contrast, the naira weakened slightly at the parallel market, depreciating by 0.37 per cent to close at N1,470/$, highlighting divergent dynamics between the regulated official market and the informal segment as the year ended.

CBN data also showed that Nigeria’s gross external reserves rose to $45.889 billion as of December 30, 2025, reflecting sustained inflows from multiple sources despite challenges in the oil sector.

Daily Trust reports that the apex bank had projected the reserves to hit $51bn in 2026 in its economic outlook for the year.

Nigeria’s crude oil production declined on both a year-on-year and month-on-month basis during the period. Oil output, including condensate, fell to 1.599 million barrels per day (bpd) in November 2025 from 1.698 million bpd recorded in November 2024, representing a 5.9 per cent decline.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its December 2025 Crude Oil and Condensate Production Report. The commission also reported that production slipped on a month-on-month basis, dropping from 1.698 million bpd in October 2025 to 1.599 million bpd in November.

According to the report, the lowest and peak combined crude oil and condensate production levels in November stood at 1.54 million bpd and 1.79 million bpd, respectively.

“The average crude oil production for November was 96 per cent of Nigeria’s OPEC quota of 1.5 million barrels per day,” the report stated. “Daily average production in November was 1,599,054 barrels per day, comprising crude oil production of 1,436,005 barrels per day and condensate output of 163,049 barrels per day.”

Despite the decline in oil output, the combination of CBN intervention and improved external reserves helped stabilise the naira, allowing it to close the year on a stronger footing at the official market.