Market News

The naira endured one of its toughest months this year as the Central Bank of Nigeria (CBN) ramped up interventions in the foreign exchange market by 348 per cent to stabilise the currency, injecting about $637 million in November amid rising capital outflows and acute dollar shortages.

TrustBanc Financial Group Limited said the apex bank sold $636.60 million to authorised dealers during the month, a sharp increase from $142.20 million in October, as foreign portfolio investors exited the Nigerian market following the introduction of the new capital gains tax regime.

Despite the heavy injections, the naira still weakened by about two per cent at the official window, signalling persistent pressure on the local currency.

Analysts noted that without the CBN’s intervention, the exchange rate would have easily crossed the N1500–N1600 range as FX outflows mounted. At the first trading session in December, the naira slipped by 12 basis points, or N1.69, to close at N1,448.4355/$, trading between N1,452.00/$ and N1,445.00/$ as lower bids from willing buyers met limited supply.

The market expects additional dollar sales from the CBN this week to manage the imbalance as liquidity remains tight. AIICO Capital Limited said the currency would continue to trade in line with demand and supply conditions, with external reserves offering some support.
Nigeria’s gross external reserves have risen to $44.6 billion despite volatility in global commodities.

Oil prices advanced more than one per cent on Monday amid geopolitical tensions, including drone strikes by Ukraine, the United States’ closure of Venezuelan airspace and OPEC’s decision to maintain output levels through the first quarter of 2026.

Brent crude rose by 81 cents to $63.25 per barrel, while West Texas Intermediate gained 90 cents to $59.45.

Gold also climbed to a six-week high as expectations of U.S. interest-rate cuts and a weaker dollar spurred demand for safe-haven assets. Spot gold edged up to $4,238.50/oz, while U.S. gold futures settled at $4,271.40/oz.

Analysts said market sentiment is likely to remain mixed, with gold attracting cautious inflows and firmer oil prices supporting energy-linked counters.