The naira strengthened against the United States dollar at the official foreign exchange window on Monday, supported by improved dollar liquidity following recent interventions by the Central Bank of Nigeria (CBN).
Data from the CBN showed that the local currency appreciated by 0.54 percent to close at ₦1,456.56 per dollar, as FX demand pressures moderated across the market.
Currency traders attributed the improvement to dollar sales conducted by the apex bank last week, during which the CBN injected $150 million into the market through authorised dealers and deposit money banks to address rising FX demand.
During Monday’s trading session, the naira traded as strong as ₦1,466 per dollar at the intraday high, improving on the ₦1,469 level recorded at the previous close on Friday. The reduced pressure on demand also allowed some foreign transactions to be executed at an intraday low of ₦1,431, compared with approximately ₦1,460 at the same point in the prior session.
Foreign exchange dealers disclosed that additional CBN dollar sales, not yet fully captured in official data, contributed to stabilising the spot FX rate ahead of anticipated year-end demand.
The improved sentiment extended to the parallel market, where the naira strengthened to ₦1,466 per dollar, reflecting easing pressures across both the official and informal FX segments.
Meanwhile, Nigeria’s external reserves recorded a marginal increase despite recent outflows related to foreign payment obligations. Gross external reserves rose to $45.216 billion from $45.209 billion, providing modest support amid ongoing volatility in global oil markets.
Crude oil prices climbed during the session following heightened geopolitical tensions. Prices rose after the United States intercepted a third oil tanker off the coast of Venezuela, while President Donald Trump announced a “total and complete” blockade on sanctioned Venezuelan oil shipments. In addition, Ukraine launched a drone strike on a Russian shadow fleet vessel operating in the Mediterranean.
Venezuela accounts for approximately 1 percent of global oil supply. Brent crude for February delivery rose by 2 percent to $61.68 per barrel as of 12:24 pm Eastern Time, while U.S. West Texas Intermediate crude for January delivery gained 2.03 percent to trade at $57.67 per barrel.
