Oil prices rose for a second consecutive day after the Central Bank of Nigeria cut its interest rate by 50 basis points, lowering it from 27.5% to 27% to spur economic growth. Brent futures gained 19 cents, or 0.3%, to $67.82 a barrel. The price increase was also driven by a stalled deal to resume exports from Iraq’s Kurdistan, which has halted pipeline shipments to Turkey, and by reports of declining U.S. crude inventories that suggest tightening supplies.
In the official foreign‑exchange market, the naira appreciated to ₦1,487.36 per dollar, a marginal gain of 0.08% from the previous day. This modest rise reflects the Central Bank’s cautious monetary‑policy pivot, the first rate cut in five years, and continued interventions alongside steady foreign‑portfolio inflows. In the parallel market, street traders kept the naira steady at ₦1,515 per dollar. The official rate’s improvement may positively affect the economy, especially as oil production climbs.
Nigeria’s daily crude output increased to 1.68 million barrels per day in the second quarter of 2025, a four‑year high since 2022. The National Bureau of Statistics and the Nigerian Upstream Petroleum Regulatory Commission reported a 9.9% year‑on‑year rise in July 2025, averaging 1.71 million barrels per day. This production surge, combined with the naira’s appreciation, could bolster economic growth and stability.
Globally, ongoing supply disruptions from Russia have supported oil prices, while uncertainty over U.S. Federal Reserve rate decisions may limit further gains. The decline in U.S. crude inventories—down 3.82 million barrels in the week ended September 19—has also contributed to the perception of tighter supplies. As the oil market evolves, Nigeria’s expanding production and a stronger naira are likely to play a significant role in shaping the country’s economic future.
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