The Nigerian naira tumbled again in the Foreign Exchange Foreign Market (NFEM) amid demand pressures from USD buyers.

The pressure against the local currency persisted amid calls for Nigeria not to strengthen the naira over its competitiveness.

The naira trades at its lowest in March

At the end of trading on Wednesday, March 12, 2025, the naira closed at N1,546 to a dollar, down from N1,537 on Tuesday, March 11, 2025.

The naira has been in freefall since the second week of March, following dwindling reserves. It hit a new low in February as the Central Bank of Nigeria (CBN) embarked on international payments.

The naira recorded its best performance on March 3, 2025, exchanging for N1,502 per dollar.

On Wednesday, currency dealers quoted the dollar at a high of N1,550 and a low of N1,520 to the dollar.

Experts ask CBN to intervene

Experts have asked the CBN to conduct another round of foreign currency interventions in the FX market to prevent the naira from total collapse.

The calls are against the advice by a UK group, Chatham House, that strengthening the naira will reduce its competitiveness in the global foreign currency markets.

Chatham House warns against stronger naira

Chatham House noted that after its depreciation, the naira is better positioned to help the Nigerian economy progress.

In an article titled ‘Nigeria’s Economy Needs the Naira to Stay Competitive, ’ the think tank noted that while inflation has surged under President Bola Tinubu, strengthening the naira was not the best way to improve the situation.

It argued that the weaker naira has made Nigeria more competitive compared to previous years when the naira exchanged around N460/$.

Chatham House further argued in the article that the naira depreciation has improved Nigeria’s Balance of Payments and return of capital into the country, helping the CBN to increase its foreign exchange reserves to prudent levels where it is roughly around the same level as the foreign debts.

Experts ask CBN to ignore Chatham House’s warnings

However, economists have asked Nigerian monetary policymakers to ignore Chatham House's advice and defend the naira.

Janet Ogochukwu, economist and senior banker, said there is an urgent need for the apex bank to defend the local currency as that would reduce inflation in the country.

“One of the main drivers of inflation in the country is the exchange rate. Nigeria is an importing country and so needs foreign goods to survive. The call not to strengthen the naira does factor in local dynamics such as low production, and escalating living costs, which are squeezing households.”

He asked foreign advisors to come down from their high horses and face reality and understand Nigeria’s peculiar circumstances.