The Nigerian naira has weakened to in the unofficial market, reflecting increased buying pressure on foreign currencies, particularly the sterling. This month, the naira has remained within a , largely driven by high demand in Lagos and other commercial hubs.

The fall highlights ongoing pressure in despite ongoing reforms by the Central Bank of Nigeria (CBN) and renewed engagement with foreign investors.

Forex traders in Nigeria’s commercial capital report a surge in demand for the British pound. This demand has pushed the naira toward its lower bound in the parallel market, even as official market rates attempt to stabilize.

The weakening of the naira comes at a time when market participants are closely watching , investor confidence, and the country’s overall macroeconomic direction.

Currency analysts believe that recent monetary reforms introduced by the CBN will be instrumental in determining whether the naira can regain strength in the second half of 2025.

A notable development is the launch of denominated in naira, introduced by in collaboration with . These instruments are backed by and are designed to provide to Nigeria’s high-yield fixed-income market.

The GDNs will be , two globally recognized clearing systems, which could significantly improve Nigeria’s integration into global capital markets.

Experts suggest that if successfully implemented, this development could bring , ease liquidity constraints, and strengthen the naira over time.

Meanwhile, the British pound has remained , including the US dollar. Despite a sharp —the worst since December 2023—the pound closed at , only slightly below the critical 1.35 resistance level.

Economists believe that the poor retail data may increase pressure on the to cut interest rates later in the year. However, high inflation remains the major obstacle to monetary easing.

Three members of the BoE’s recently voted in favour of a , citing weak consumer demand, softening wage growth, and broader signs of labour market loosening.

According to the UK Office for National Statistics, the country’s , while —which excludes food and energy—declined from .

Although these figures align with expectations, they are still , suggesting that the central bank may take a cautious approach before adjusting interest rates.

UK Finance Minister Rachel Reeves acknowledged the government’s progress in stabilizing public finances but noted that “there is more to do,” a comment interpreted by markets as a signal of ongoing economic uncertainty.

Currency strategists at forecast that the against the pound in the coming months, potentially pushing the . This forecast is based on the assumption that inflation will continue to weigh on UK consumer spending and sentiment.

The bank added that while affect both currencies, they expect these headwinds to ease, leading to a more stable trading environment in the eurozone.

The British pound has also benefitted from the , driven by investor concerns over . With markets growing wary of the White House’s unpredictability, many investors have shifted capital toward the pound and euro, bolstering their value in the global market.

As the naira struggles to hold ground in the unofficial market, the combined influence of:

…will play a critical role in shaping Nigeria’s foreign exchange outlook.

If the GDN initiative draws substantial investment, it could provide the . However, if global risk sentiment worsens or demand for foreign currency continues to outpace supply, the naira could come under further pressure.

The naira’s fall to N2,200 per pound reflects the fragile balance between domestic monetary reform and global economic realities. While demand for foreign currency remains high, the success of initiatives like naira-denominated depositary notes, along with disciplined policy execution, could determine whether the local currency stabilizes or weakens further in 2025.

Market participants are advised to monitor exchange rates, policy signals from the CBN, and macroeconomic developments both in Nigeria and globally.