Nigeria’s currency continued its upward trajectory against the United States dollar as official data showed a sharp improvement in the country’s external buffers, reinforcing confidence in the foreign exchange market.
Figures released by the Central Bank of Nigeria (CBN) indicate that the naira appreciated further at the official trading window, closing at ₦1,351.02 per dollar. This represents a ₦3.23 gain from the previous closing rate of ₦1,354.25, reflecting sustained demand-supply balance supported by stronger inflows.
Trading data from the CBN revealed that the local currency moved within a narrow range during the session, fluctuating between a low of ₦1,349.30/$ and a high of ₦1,354.00/$. Market participants attributed the stability to improved FX liquidity, driven by heightened participation from foreign portfolio investors, exporters, non-bank corporates, and other institutional players.
The currency performance coincided with a significant boost to Nigeria’s external reserves, which climbed to $47.025 billion. This marks the highest reserve position recorded since 2018, following an accretion of approximately $112.94 million from multiple inflow channels.
Analysts note that the steady buildup of reserves since the beginning of the year reflects a combination of higher crude oil receipts, renewed foreign investor interest, and more disciplined foreign exchange management by the apex bank. These factors have collectively strengthened Nigeria’s capacity to meet external obligations and support exchange rate stability.
Market expectations remain cautiously optimistic, with traders anticipating that the naira will continue to trade in line with prevailing demand and supply conditions. The improved reserve position is expected to provide a buffer against volatility while sustaining confidence across the FX market in the near term.
