By Boluwatife Oshadiya | April 20, 2026
KEY POINTS
- Naira appreciates 1.13% to ₦1,343.64 at official market
- Parallel market strengthens to ₦1,370/$ on improved dollar supply
- External reserves fall to $48.70 billion amid sustained CBN interventions
MAIN STORY
The Nigerian naira strengthened across foreign exchange markets last week, appreciating by 1.13% to close at ₦1,343.64 at the official window, supported by improved FX liquidity and sustained interventions by the Central Bank of Nigeria (CBN).
At the parallel market, the currency also firmed to ₦1,370 per dollar, aided by weekly dollar sales estimated at $150,000 at rates aligned with the CBN window. The exchange rate traded within a positive range during the week as the apex bank continued its dollar injections to stabilise supply-demand dynamics.
Despite the currency gains, Nigeria’s external reserves declined to $48.70 billion, reflecting persistent FX interventions alongside external obligations. Analysts attribute the reserve drawdown to ongoing debt servicing commitments, reduced oil revenue inflows, and sustained capital outflows linked to foreign investor repositioning.
In the commodities market, crude oil prices weakened significantly during the period. Brent crude fell to $89.56 per barrel, down 9.89%, while U.S. West Texas Intermediate (WTI) dropped over 10% to trade below $90. The decline followed easing geopolitical tensions, including a 10-day ceasefire between Israel and Lebanon and renewed signals of potential U.S.-Iran negotiations.
“Looking ahead, the naira is expected to remain sensitive to continued Central Bank interventions and evolving foreign exchange liquidity conditions,” analysts at Cowry Asset Limited said.
WHAT’S BEING SAID
“Recent appreciation reflects short-term liquidity support rather than structural strength,” Cowry Asset Limited stated.
“External pressures from debt servicing and portfolio outflows could limit sustained gains,” the firm added.
WHAT’S NEXT
- FX market participants will monitor reserve levels for signals on CBN intervention capacity
- Oil price movements remain a key determinant of FX inflows
- Further policy signals from the CBN are expected to shape near-term currency direction
