Naira trades flat in black market despite recent pipeline explosions

The naira remained stable in the black market on Wednesday despite concerns that the recent oil 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 rate of N1,579 on Wednesday compared to N1,580 on Tuesday. In certain areas of Lagos, the dollar was exchanged at N1,575 per dollar, while some traders offered it at rates of N1,577 and N1,580.

Read also: Naira falls across FX markets amid pipeline explosion

Against other major currencies, the naira gained N10, as the Pound was quoted at N2,040 on Wednesday, the same as on Tuesday, and slightly stronger than Monday’s rate of N2,050. The local currency also traded at N1,710 per Euro on Wednesday, compared to N1,700 per Euro on Tuesday. Meanwhile, the Canadian dollar remained steady at N1,150, while the Chinese Yuan traded at N1,215 in the black market.

A recent explosion on the Trans-Niger Pipeline, one of Nigeria’s most critical oil pipelines, led to significant disruptions and raised concerns over environmental and economic implications.

However, operations on the pipeline have now resumed after a temporary shutdown due to the explosion and fire, easing fears that the incident would negatively affect the naira.