The Nigerian currency, the naira, reversed a two-week gain in the official window on Wednesday, September 17, 2025, due to a shortage of forex.

The naira’s value depreciated as the Nigerian Foreign Exchange Market (NFEM) experienced an imbalance between the volumes of US dollars supplied and the aggregate demand from eligible market players.

The dollar trades at N1,484

According to data from the Central Bank of Nigeria (CBN), the spot rate at the official market closed at N1,494 per dollar, from N1,484, the previous day.

The apex bank’s updated data showed that the dollar was priced at a high of N1,498 before closing at N1,494.

The foreign currency market is expected to receive support from the CBN to boost the outlook for the naira in 2025.

The naira has surged in the past two weeks, rising from N1,504 to N1,484 per dollar before slumping on Wednesday.

A new benchmark emerges in the FX market

Experts have said that the naira’s significant gains were due to broader pressure on the US greenback in the global FX market.

Experts who spoke to Legit.ng said that there is now a new exchange rate benchmark in the official window.

“The current rate at N1,480 per dollar should be the benchmark to judge the naira and dollar performances,”

Janet Ogochukwu, senior banker and economist, told Legit.ng on a call. She asked the CBN to maintain the current value as the local currency is now inspiring confidence among investors in the FX market.

“CBN should keep an eye on the FX market, not to allow significant volatility to return. The naira is now highly competitive, and the market is predictable,” she said.

Nigeria’s reserves climb to a four-year high

Meanwhile, Nigeria’s external reserves climbed to a four-year high, hitting nearly $41.9 billion, and it is expected to further surge before the end of the week.

CBN data disclosed that inflows have remained consistent amid fluctuations in the global oil prices in the commodity market.

According to a report by Market Forces Africa, the oil market came under pressure as the American Petroleum Institute (API) reported a dip in US crude stockpile.

Volatility in crude oil prices

After gaining for three days, ICE Brent and NYMEX WTI traded lower on Wednesday, September 17, 2025, as the US API reported large crude oil inventory withdrawals.

Latest data shows that those inventories decreased by 3.4m barrels over the last week, in contrast to the average market expectations of a build of 1.07m barrels.

Changes in refined products were mixed, with gasoline inventories falling by 700k barrels, while distillate stocks increased by 1.9m barrels.

The rise in distillate stocks provided mixed signals over energy consumption in the country.

The more widely followed EIA weekly inventory report will be released later today.

Ukraine’s attack on Russia sends shockwaves

Meanwhile, recent claims by Ukraine that it attacked the Saratov refinery in its latest strike on Russian energy facilities might help create a floor for oil prices at lower levels.

The Saratov refinery (located in the Volga region) has a design processing capacity of about 140k barrels of crude a day.

It is also one of the major suppliers of gasoline and diesel to the European part of Russia.

Oil inventories decreased by 3.4 million barrels last week, contrary to market expectations of a 1.07 million barrel build.

Refined product changes were mixed, with gasoline inventories down by 700,000 barrels and distillate stocks up by 1.9 million barrels.

This rise in distillate stocks offered mixed signals regarding energy consumption.

The more closely watched EIA weekly inventory report is due later today.