Goldman Sachs says falling oil prices may force another naira devaluation.
BUSINESS DAY NG
Goldman Sachs has warned that Nigeria may be heading for another naira devaluation as global oil prices continue to slide. In a report released this week, the investment bank said weakening oil revenue could intensify pressure on Nigeria’s foreign exchange reserves and overall economic stability.
“Naira devaluation is back on the table,” Goldman noted, citing the government’s reliance on oil earnings and the need to maintain a sustainable fiscal balance.
Brent crude fell below $90 per barrel earlier this week, deepening concerns about Nigeria’s ability to meet its foreign exchange demands. Analysts say the Central Bank of Nigeria (CBN) may be forced to adjust the naira once again to reflect market realities.
The naira, which has seen multiple devaluations in the past year, currently trades at around ₦1,300 to the dollar in the official market.