Naira Gains Value As FBN And FX Investors Increase Forex Supply

Federation Account Amasses Over ₦5trn In 6months- RMAFC

The naira strengthened significantly against the US dollar in the official exchange market, thanks to increased foreign currency availability provided by the Central Bank of Nigeria (CBN) and foreign investors.

Data from the forex market showed that the naira rose by 72 basis points, closing at ₦1,522.68 per US dollar. This improvement came after the CBN injected more foreign currency into the market, alongside fresh investments from international investors.

In the parallel market, the naira also improved, gaining ₦20 to settle at ₦1,620 per dollar. This followed a decision to waive annual licence renewal fees for Bureau de Change operators, boosting their operations.

Financial firm AIICO Capital expects the naira to stay in a similar range, noting that most transactions in the official market occurred between ₦1,502.85 and ₦1,548 per dollar on Tuesday.

Coronation Research reported that foreign currency inflows into Nigeria’s autonomous forex market increased by 18.13% in a week, reaching $769.4 million. The CBN contributed 34.56% of the inflow, but this heavy intervention is reducing Nigeria’s foreign reserves, now below $40 billion. Other sources of forex included foreign investors (30.07%), private companies (21.51%), exporters (13.38%), and miscellaneous sources (0.48%).

Meanwhile, oil prices rose slightly after weeks of decline. Disruptions in Libya’s oil exports helped offset concerns about reduced demand due to China’s weak economy and rising global temperatures. Brent crude traded at $77.20 per barrel, while West Texas Intermediate (WTI) stood at $73.25. Gold prices also bounced back to $2,751.66 per ounce, driven by investor concerns over U.S. tariff policies.