By Boluwatife Oshadiya | June 24, 2026
Key Points
- Naira depreciates to ₦1,370.64 per dollar at the official market
- Strong foreign exchange payment obligations outweigh improved liquidity
- Nigeria’s external reserves rise above $51.14 billion
Main Story
The naira weakened slightly against the U.S. dollar on Tuesday as growing demand for foreign exchange payments offset improved liquidity in the Nigerian Foreign Exchange Market (NFEM).
According to data from the Central Bank of Nigeria, the official exchange rate depreciated from ₦1,369.16 per dollar on Monday to ₦1,370.64 per dollar. The currency traded within a range of ₦1,365 and ₦1,375 during the session.
Despite the marginal decline, market activity increased significantly. Interbank foreign exchange turnover surged by 92% to $125.31 million across 106 deals, compared with $65.21 million recorded in the previous session.
Analysts attributed the pressure on the naira to heightened international payment obligations and a slowdown in direct market interventions, even as liquidity conditions improved.
Meanwhile, Nigeria’s external reserves continued to strengthen, rising to $51.14 billion from $51.06 billion the previous day. Market analysts linked the improvement to stronger crude oil production levels and elevated global oil prices in recent months.
However, oil prices eased on Tuesday as investors monitored developments surrounding discussions between the United States and Iran regarding the possible resumption of crude exports through the Strait of Hormuz.
“The increase in reserves provides a strong buffer for the naira, although demand-side pressures remain a key challenge in the foreign exchange market,” analysts at MarketForces Africa said.
The Issues
Nigeria’s foreign exchange market remains heavily influenced by external factors, including oil revenues, capital flows, and global dollar strength. While reserve accumulation has improved confidence, sustained demand for dollars by importers and corporates continues to place pressure on the local currency.
The balance between liquidity provision and market-driven pricing remains central to exchange-rate stability.
What’s Being Said
“Improved reserve levels strengthen Nigeria’s external position and support confidence in the foreign exchange market,” market analysts told MarketForces Africa.
Independent economists also noted that continued growth in oil production could further support reserve accumulation and reduce pressure on the naira.
What’s Next
- Investors will monitor upcoming CBN foreign exchange market interventions.
- Oil price movements and global geopolitical developments will remain key drivers of reserve growth.
- Market participants will watch whether stronger FX inflows can offset growing demand pressures.
The Bottom Line:
The naira remains relatively stable despite persistent foreign exchange demand pressures. Continued reserve growth provides support, but sustained liquidity improvements will be necessary to strengthen the currency further.
