The Nigerian naira recorded its most significant daily appreciation of the year on Tuesday, buoyed by stronger foreign exchange inflows that helped US dollar supply outpace demand at the official market.
At the close of trading at the Nigerian Foreign Exchange Market (NFEM), the naira strengthened by 120 basis points, gaining ₦17.73 to settle at ₦1,401.22 per US dollar. This marked the currency’s sharpest daily gain since the start of the year.
Market data showed that the rally was largely driven by inflows from Foreign Portfolio Investors (FPIs), which enhanced dollar liquidity during the trading session. The naira traded within a relatively tight range, touching a session low of ₦1,400.00 and a high of ₦1,415.00 per dollar.
Supporting the currency’s performance, the Central Bank of Nigeria disclosed that the nation’s external reserves continued their upward trajectory. Reserves increased by $25.32 million from the previous day, lifting the total stock to $46.04 billion.
Analysts anticipate further improvement in Nigeria’s reserve position as crude oil prices trend higher, supported by geopolitical disruptions and rising global production volumes.
On Tuesday, global oil prices climbed by roughly 2%, following production setbacks triggered by a winter storm that disrupted output and refinery operations along the US Gulf Coast. Additional supply concerns emerged from Kazakhstan, where the restart of production at the Tengiz oilfield progressed slower than expected.
Brent crude advanced by 3.71% or $2.40 to trade around $67.17 per barrel, while US West Texas Intermediate (WTI) rose 2.38% to approximately $62.07 per barrel.
In the commodities space, gold prices extended their rally after breaching the $5,000-per-ounce mark in the prior session. Persistent global economic uncertainty and escalating geopolitical risks continued to drive investor demand for safe-haven assets.
