The Nigerian naira recorded a sharp appreciation against the US dollar at the official foreign exchange market on Tuesday, buoyed by improved liquidity conditions and renewed investor confidence.
Data from the Central Bank of Nigeria (CBN) showed that the official exchange rate strengthened to around ₦1,400 per dollar, marking the strongest level since the introduction of recent foreign exchange reforms.
According to the CBN’s daily foreign exchange report, the naira appreciated by 1.27% to close at ₦1,401.22/$ at the official window. Market checks also indicated gains in the parallel market, where the local currency strengthened by 0.33% to trade at approximately ₦1,476/$.
The simultaneous improvement across both the regulated and informal segments of the FX market signals a broad-based recovery in currency sentiment, supported by increased dollar supply and reduced speculative pressure.
Meanwhile, global oil prices moved lower on Tuesday as investors assessed the likelihood of increased crude supply. Brent crude futures for April delivery fell by 0.69% to $64.32 per barrel, while March West Texas Intermediate (WTI) declined 0.64% to $60.27 per barrel.
Market participants are pricing in expectations of higher oil output following developments at Kazakhstan’s Tengizchevroil project and reports involving US-based energy major Chevron, which have raised prospects of additional supply entering the global market.
