Market News
Oil Price Rally Strengthens Naira, Lifts Reserves On CBN Reform Gains - LEADERSHIP
Mark Itsibor
Nigeria’s improving macroeconomic outlook is receiving a fresh tailwind from rising global oil prices, reinforcing recent gains in the naira and external reserves. MARK ITSIBOR reports
With Brent crude trading around $69 per barrel-above Nigeria’s 2026 federal budget benchmark of $64.85 the price rally would largely bolster the country’s fiscal revenues, foreign exchange reserves and promote exchange rate stability. Analysts posit that a full-scale conflict disrupting the Strait of Hormuz—a chokepoint for about 20 per cent of global oil flows - could send Brent prices surging to $91 or even $150 per barrel in weeks. With the naira and foreign reserves already gaining more grounds following key reforms instituted by the Olayemi Cardoso led Central Bank of Nigeria (CBN), the ongoing oil prices rally presents opportunity for the local currency and external reserves to consolidate gains in the coming weeks.
Oil prices rose on Thursday, extending gains for a third consecutive day as concerns grew that the United States could take military action against Iran—a key Middle Eastern oil producer - potentially disrupting regional supplies.
Brent crude futures rose by 94 cents, or 1.4 per cent, to $69.34 a barrel, US West Texas Intermediate (WTI) crude also jumped 1.5 per cent to $64.13 per barrel.
