CBN Auction and Dangote Refinery to Strengthen Naira

The Central Bank of Nigeria (CBN) is anticipated to conduct a significant foreign exchange auction, which, along with the full operation of the Dangote Petroleum Refinery, is expected to bolster the Naira. The Nigerian foreign exchange market opened with a rate of N1,353.54, with expectations to trade near N1,350.

The daily average close rate ranged between N1,353 and N1,355, indicating stability in the official window. The Naira has shown slight strength compared to early February when it traded between N1,348 and N1,358.

The CBN aims to improve retail supply by allowing licensed Bureau de Change (BDC) operators to purchase $150,000 weekly. The parallel market rate for the Naira against the US dollar is currently between N1,420 and N1,435.

The CBN projects external reserves will grow to $51 billion by 2026, enhancing the Naira's outlook amid high dollar demand. The Dangote Refinery, the largest single-train facility in Africa, is expected to reduce the country's dependence on fuel imports, further supporting the Naira.