Nigeria’s naira staged a stunning comeback on Thursday, soaring 19.17% against the dollar in official markets after hitting a record low the previous day. This dramatic turnaround followed a $2.25 billion injection of foreign exchange (FX) by Afreximbank, providing much-needed relief to the currency’s liquidity drought.
The surge saw the naira close at N874.79 per dollar, a N207.53 gain from Wednesday’s abysmal N1,082.32. However, the optimism didn’t extend to the unofficial black market, where the naira actually slipped marginally to N1245/$1. This highlights the ongoing disconnect between official and black market rates, suggesting deeper forex challenges remain.
Afreximbank’s intervention, signed just before the new year, is a critical step in easing Nigeria’s FX pressure. The $3.3 billion facility, with NNPC Limited as the main financier, aims to boost dollar supply in the official NAFEM window. The initial $2.25 billion tranche deposited into the Central Bank is expected to alleviate immediate liquidity strains.
However, the black market depreciation serves as a cautionary note. While the official surge is encouraging, long-term stability requires more than a one-off injection. Addressing fundamental issues like oil production and diversifying the economy are crucial for sustainable forex market recovery.
.
