The naira strengthened against the U.S. dollar in the official market, closing at ₦1,465.29 per dollar, even as weekly foreign exchange inflows dipped sharply by 33% to $1.1 billion, data from Coronation Merchant Bank Limited revealed.
Analysts told MarketForces Africa that the reduced FX inflows partly explain the exchange rate fluctuations witnessed last week. Nonetheless, they maintained a positive outlook on the local currency’s stability as liquidity levels remained adequate.
According to data from the Central Bank of Nigeria (CBN), the naira appreciated by 0.69%, reaching an intraday high of ₦1,470, compared with Friday’s ₦1,482 close. The CBN reportedly sold $70 million to commercial banks to strengthen dollar supply and maintain exchange rate stability.
In the parallel market, however, the naira weakened slightly by 1.07%, trading at ₦1,500 per dollar in Lagos and Abuja, reflecting persistent demand pressures outside the official window.
Nigeria’s external reserves rose to $42.696 billion last week, supported by moderate inflows and limited withdrawals. Analysts expect additional inflows in the coming days to boost reserve balances further.
Meanwhile, the International Energy Agency (IEA) projected a potential oil supply surplus in 2026. The U.S. Energy Information Administration (EIA) also reported a 3.5 million-barrel increase in U.S. crude inventories to 423.8 million barrels—far above forecasts.
The surge in inventories was driven by lower refinery runs during seasonal maintenance periods. Ongoing trade tensions between the U.S. and China have also reignited fears of slower global growth and weakened energy demand, factors that may influence Nigeria’s FX outlook.
