Lagos, Nigeria – The naira remained relatively stable in the black market on Wednesday, despite concerns that the recent Trans-Niger Pipeline explosion could impact the exchange rate.
In the parallel market, the naira saw a slight depreciation of about N1, with the dollar quoted at an average of N1,579 on Wednesday, compared to N1,580 on Tuesday. In some areas of Lagos, the dollar was exchanged at N1,575, while other traders offered it at rates between N1,577 and N1,580.
Naira’s Performance Against Other Currencies
Against major foreign currencies, the naira showed mixed performance:
British Pound (GBP): Remained stable at N2,040, slightly stronger than Monday’s N2,050.
Euro (EUR): Strengthened to N1,710 from N1,700 on Tuesday.
Canadian Dollar (CAD): Held steady at N1,150.
Chinese Yuan (CNY): Traded at N1,215 in the black market.
Impact of the Trans-Niger Pipeline Explosion
The explosion on the Trans-Niger Pipeline, a key oil transportation route, initially raised fears of economic and environmental disruption. However, following a temporary shutdown, operations have resumed, easing concerns that the incident would have a lasting impact on the naira’s stability.
With crude oil being Nigeria’s primary foreign exchange earner, fluctuations in oil production and export capacity often influence the exchange rate. Analysts suggest that barring further disruptions, the naira could maintain its current trajectory in the short term.
