The naira depreciated by 2.4 per cent and 2.6 per cent in March at both the Nigerian Autonomous Foreign Exchange Market window and the parallel market compared to the previous month.
According to the latest Afrinvest Monthly Market Report titled “Analysing Global and Nigerian Economies & Financial Markets,” the naira dropped to ₦1,536.82/$ and ₦1,530.00/1.00 at the NAFEM window and parallel market, respectively.
AIICO Capital, in its monthly macroeconomic market report in March, also confirmed that the naira came under a lot of demand pressure despite interventions by the Central Bank of Nigeria to the tune of $668.8 million.
“The naira experienced significant depreciation in March 2025 due to persistent demand pressure in the (Nigerian) foreign exchange market.
“Despite the Central Bank of Nigeria intervening with substantial dollar sales totalling $668.8m, the naira weakened by 2.97 per cent m/m, closing at N1,536.82/$ from N1,492.49/$ at the start of the month,” stated AIICO Capital.
In the period under review, demand remained robust, particularly from foreign portfolio investors and local corporates. AIICO Capital said that the parallel market mirrored this trend, depreciating by about ₦43.50/$ to ₦1,536.00/$.
Although liquidity improved mid-month with CBN interventions, demand continued to outstrip supply, The PUNCH reports.
“In the final week, despite continued CBN dollar sales and a slight appreciation of 0.5 0.5 bps, the naira remained under pressure. On a quarterly basis, the naira depreciated by 7 bps q/q at the NFEM window. Meanwhile, external reserves fell by c.$110m to $38.31bn,” AIICO Capital further stated.
In terms of outlook, the investment house sees the CBN sustaining liquidity to stabilise the naira in the near term. “However, global risks—like US tariffs and retaliatory measures—may spur volatility and capital flight,” the report concluded.
Already, the Central Bank of Nigeria has stated that the naira has felt the impact of the global macroeconomic shifts set by the new tariffs imposed by the U.S. president, Donald Trump.
