The United States dollar has crashed to its lowest in the official foreign exchange market against the naira

The British pound and the euro have also dropped in value as the naira continues its strong performance

The naira performance, according to Coronation Merchant Bank Limited, has attracted foreign exchange inflows

The Central Bank of Nigeria has revealed that the naira is now at its lowest level against the US dollar in 2025.

After trading activities at the Nigerian Foreign Exchange Market (NFEM) on Tuesday, October 26, the naira appreciated against the US dollar to close at N1,447/$.

The new exchange rate is a gain of N4.75 or 0.33% against the United States Dollar, in contrast to the preceding day’s N1,453.07/$1.

The last time the naira traded below N1,450 was in 2024 before the introduction of the NFEM.

It was the same performance for the naira against the British pound sterling and the euro on Tuesday in the official market.

The naira strengthened against the pound sterling in the official market, gaining N27.07 to close at N1,919.45 per £1, up from Monday’s N1,946.52 per £1.

The Nigerian currency also rose by N4.91 against the euro, ending the session at N1,690.33 per €1, compared with the prior session’s N1,695.24 per €1.
At GTBank, the naira gained N3 against the US dollar, exchanging at N1,462 per $1, up from N1,465 per $1 recorded the previous day.

In the black market, BDC traders confirmed to Legit.ng that the naira also appreciated:

One of the traders, Musa Bashir of said:

“My brother, the market has changed. We no longer get dollars from CBN and less patrinage because of banks having dollars now.

The dollar buying rate has dropped to 1,463 and selling rate now at N1,475. Previously buying rate was N1,476, while the selling rate is N1,486.

It is the same for the euro sells at N1,715, and we buy at N1,700. The British pound sterling is now trading below N2,000, selling at N1,995, with a buying rate of N1,970.”

Naira appreciation comes at the back of liquidity into the official market from foreign sources, the Central Bank of Nigeria (CBN), and other channels.

Its market update, Coronation Merchant Bank Limited revealed that the inflow to NFEM improved to $1.37 billion last week.

This suggests FX inflows in the official window increased by 25% week on week from $1.10 billion in the prior week.

Foreign portfolio investors (FPIs) remained the dominant source, according to Coronation Research, contributing 33.5 per cent ($460.01 million) of total inflows, followed by exporters (14.9 per cent), Non-Bank Corporates (10.8 per cent), CBN (6.6 per cent), and other sources (28.6 per cent).

In a related development reported that the Bank of Tanzania officially banned the use of foreign currencies, including the dollar, for local transactions and payments within the country.

With the ban, all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

In a public notice, the central bank announced that all goods and services in Tanzania must now be priced and paid for strictly in Tanzanian Shillings.

The House of Representatives has approved President Bola Tinubu’s request to secure a $2.35 billion loan to help finance the 2025 budget deficit, despite growing concerns over Nigeria’s rising debt profile.

The House also granted approval for the issuance of a $500 million sovereign sukuk on the international capital market to support infrastructure development and broaden the country’s funding sources.

The lawmakers reached the decision after reviewing the report of the Committee on Aids, Loans, and Debt Management.

This development comes amid heightened debate regarding Nigeria’s escalating debt burden.

As of the first quarter of 2025, the nation’s total debt stood at ₦149.39 trillion, up from ₦121.7 trillion in the corresponding period of the previous year.

In September 2025, Speaker of the House, Tajudeen Abbas, warned that Nigeria’s debt levels had reached a critical point.

However, the Presidency has maintained that the current administration is borrowing responsibly.

The trouble at Dangote Refinery has reportedly deepened as its petrol-producing unit has shut down

Amid the ongoing industrial dispute against Dangote Refinery by the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN), the mega refinery has run into new challenges.

Also, data shows that the refinery is facing crude oil challenges as intakes slowed in September.

The refinery’s challenges are also compounded by industrial action as oil unions protest the sack of 800 Nigerian workers at the facility

Africa’s largest refinery is reportedly grappling with operational challenges as crude oil inflows drop sharply in September 2025.

Also, the facility’s petrol-producing unit and residual fluid catalytic cracker (RFCC) have allegedly broken down.

According to the petroleum product-tracking platform, PetroleumPriceNG, the failure to issue new pro forma invoices has triggered hoarding at the refinery, leading to higher petrol prices.

Recall that Legit.ng reported that the 650,000 bpd-capacity refinery increased its ex-depot prices for petrol to N860 per litre, up from N825.

Experts attributed the increase, which also affected other depot operators, to a rise in crude prices.

Meanwhile, crude intake into the mega refinery dropped sharply this month. Data from Vortexa shows that inflows dropped to about 250,000 barrels per day.

Energy policy analysts warn that if the scenario continues, it will be the lowest crude supply to the Lekk-based plant since September last year, when Fitch downgraded it and banks tightened finance lines, shrinking its ability to purchase crude.

With less feedstock coming in, the facility cannot run at optimal capacity, which is currently estimated at 500,000 barrels per day. Also, it shows Nigeria’s vulnerability as the world’s largest single-train refinery struggles to maintain stable production.

As crude supply dips, the RFCC has also gone offline for maintenance, with industry watchers speculating that the unit may not resume full operations until early October.

Meanwhile, the refinery has redirected more low-sulphur straight-run fuel into the export market. Data shows that exports hit 320,000 barrels per day this month, the refinery’s highest cargo shipment on record.

The shift may keep revenue coming, but it starves the Nigerian and African market of the much-needed petroleum product supply.

Experts say product inflows from other regions into West Africa have slowed to less than one million tonnes of petrol and blending components in September. The figure is reportedly below the year-to-date average and marks the weakest September arrival on record.

This means West Africa is receiving fewer petrol imports as Dangote struggles to stabilise operations. The squeeze increases the refinery’s dominance as its failure could have multiple ripple effects in the petroleum product market.

The production challenges have affected the downstream sector. In early September, the massive plant halted sales, promising to resume allocation later in the month.

Already, the delay has created panic, as marketers holding old stocks hoard them, selling at premium rates.

Reports say depot prices surged above Dangote’s N820 per litre ex-depot price of N820 to N870, while Wosbab Lagos recorded the highest daily increase at almost three per cent.

The situation at Dangote demonstrates that sheer size does not guarantee stability. The refinery’s challenges highlight Nigeria’s precarious balance between energy security and vulnerability to global oil volatility.

Every disruption quickly translates into inflationary pressures within the downstream market. For Dangote, the immediate priorities are clear: restore RFCC operations and ensure timely PFI issuance.

For Nigeria, the lesson is more profound: without enhanced upstream output and improved policy coordination, the aspiration of affordable, dependable petrol may remain elusive, even with Africa’s largest refinery.