By Boluwatife Oshadiya | July 24, 2026, 6:15 PM
Key Points
- The naira appreciated to ₦1,367/$1 at the official foreign exchange market, extending its winning streak to four consecutive trading sessions.
- Interbank foreign exchange transactions were executed within the ₦1,365–₦1,370/$1 range despite lower trading activity.
- Analysts attributed the naira’s resilience to improved dollar liquidity, sustained foreign portfolio inflows and stronger external reserves.
Main Story
The Nigerian naira extended its appreciation against the United States dollar for the fourth consecutive trading session on Thursday, closing at ₦1,367/$1 in the Nigerian Foreign Exchange Market (NFEM), compared with ₦1,369/$1 recorded a day earlier.
Official market data showed the local currency traded within a narrow band of ₦1,365/$1 and ₦1,370/$1 during the session, reflecting improved dollar liquidity and relative stability in the official market.
Interbank foreign exchange turnover, however, moderated during the day. Data from the Central Bank of Nigeria (CBN) showed total turnover declined to $334.13 million, representing a drop of nearly 20% from the $416.42 million recorded in the previous session. The number of completed deals also fell to 122, down from 198 on Wednesday.
Market analysts said the naira’s recent performance reflects improved confidence in Nigeria’s foreign exchange market, supported by sustained foreign portfolio inflows, stronger external reserves and ongoing foreign exchange reforms introduced by the CBN.
Analysts also noted that Nigeria’s external reserves, which remain above $52 billion, continue to provide a buffer for the local currency, while higher global crude oil prices could further strengthen foreign exchange inflows into Africa’s largest oil producer.
Brent crude climbed sharply during the week as renewed geopolitical tensions in the Middle East raised concerns over potential disruptions to global oil supplies. Rising oil prices are generally viewed as supportive of Nigeria’s foreign exchange earnings, although they also pose inflationary risks for oil-importing economies.
What’s Being Said
Market analysts said improved liquidity in the official market and the CBN’s sustained foreign exchange reforms have significantly strengthened confidence among investors and market participants.
“The conversation has shifted from whether the naira will weaken to how much further it can strengthen, provided current foreign exchange reforms and capital inflows remain intact,” analysts at MarketForces Africa said.
What’s Next
- Investors will closely monitor the CBN’s intervention strategy and foreign exchange liquidity in the coming weeks.
- Market participants are expected to watch movements in global crude oil prices, given their implications for Nigeria’s foreign exchange earnings.
- Analysts also expect upcoming external reserve data and foreign portfolio investment flows to provide further direction for the naira.
The Bottom Line: The naira’s fourth consecutive gain suggests recent foreign exchange reforms and improved dollar supply are beginning to restore stability to Nigeria’s official market. Sustaining the rally, however, will depend on continued capital inflows, healthy external reserves and the CBN’s ability to preserve market confidence amid evolving global economic conditions.
