Nigeria’s currency has strengthened further at the official foreign exchange market, trading below the ₦1,350/$ mark for the first time since May 2024, signaling improved momentum in recent weeks.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira appreciating to around ₦1,351 per dollar, continuing a steady recovery trend driven by improved foreign exchange liquidity and policy measures by the Central Bank of Nigeria (CBN).
The development reflects a modest but sustained gain from earlier levels above ₦1,400 recorded in late January, as the apex bank’s liquidity management and ongoing reforms help stabilise the market. Analysts attribute the strengthening to increased dollar supply, reduced speculative demand, and improved confidence among market participants.
In the parallel market, the naira also firmed, trading within the ₦1,425–₦1,440 range, narrowing the gap between the official and unofficial windows. Dealers noted that improved retail dollar availability and lower hoarding activities contributed to the softer black-market rates.
Market watchers say the currency’s performance underscores the growing impact of recent foreign exchange reforms aimed at enhancing transparency, tightening compliance, and improving price discovery. However, they caution that sustaining the rally will depend on consistent policy execution, steady inflows, and broader macroeconomic stability.
The naira’s move below ₦1,350 marks a key psychological level and reinforces cautious optimism that the local currency may consolidate within the ₦1,350–₦1,365 band in the near term if current conditions are maintained.
