The Nigerian naira appreciated against the U.S. dollar last week, buoyed by strong foreign exchange inflows from International Money Transfer Operators (IMTOs) and offshore portfolio investors, according to market reports.
The uptick in the local currency’s value came as substantial dollar inflows strengthened the supply side of the market, while a softer U.S. dollar—triggered by weaker-than-expected U.S. economic data—further supported exchange rate stability.
Investment firms including Cordros Capital Limited and AIICO Capital Limited confirmed that the official exchange rate was influenced by these strong liquidity inflows, with the naira trading within the ₦1,445–₦1,468/$ band throughout the week. By week’s close, the naira settled at ₦1,465.68/$, representing a 1.01% appreciation week-on-week.
In the parallel market, the naira also strengthened by 1.48% to ₦1,488/$, reflecting spillover effects from improved liquidity and a steady rise in external reserves. Nigeria’s foreign reserves extended their upward trajectory for the twelfth consecutive week, increasing by $150.99 million to reach $42.41 billion as of early October. The gains were supported by higher oil receipts, remittance inflows, and portfolio investments.
However, oil prices experienced downward pressure, with Bonny Light crude falling by 4.66% to $69.94 per barrel, raising fiscal concerns over potential revenue shortfalls if the trend persists. Brent crude futures for November delivery declined by 6.78% to $64.53 per barrel, while West Texas Intermediate (WTI) settled 7.36% lower at $60.88 per barrel.
Meanwhile, gold prices continued their upward trajectory, climbing 3.31% to $3,886.84 per ounce, as investors sought safe-haven assets amid fears of a prolonged U.S. government shutdown and speculation of potential interest rate cuts. Analysts predict that gold could test the $4,000 per ounce mark if market uncertainty persists.
With improved FX inflows and stable investor sentiment, analysts anticipate the naira’s near-term outlook to remain positive, although risks tied to fluctuating oil prices and global market volatility could temper gains.
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