Oil prices rose for a second consecutive day on Wednesday following the Central Bank of Nigeria’s decision to cut its benchmark interest rate. On Tuesday, the CBN reduced the Monetary Policy Rate (MPR) by 50 basis points — from 27.5% in July to 27% — marking its first rate cut in five years.
Brent crude futures climbed 19 cents, or 0.3%, to $67.82 per barrel as of 5:00 AM WAT. The benchmark had gained over $1 per barrel on Tuesday after a delay in resuming oil exports from Iraq’s Kurdistan region. Shipments through a key pipeline to Turkey remained halted, with negotiations stalled due to demands for debt repayment guarantees from two major producers.
Adding to market momentum, an industry report revealed a decline in U.S. crude inventories last week, reinforcing expectations of tightening global oil supply.
Meanwhile, the Nigerian naira appreciated in the official foreign exchange market. On Tuesday, the local currency strengthened to ₦1,487.36 per U.S. dollar, up from ₦1,488.60 on Monday — a modest gain of 0.08%, according to data from the CBN.
In the parallel (black) market, the naira remained stable at ₦1,515 per dollar, according to street traders.
The CBN’s rate cut reflects a cautious shift in monetary policy aimed at stimulating economic growth, as inflation continues to show signs of easing. This policy pivot marks a significant moment for Nigeria’s economic strategy amid global market fluctuations.
