The naira extended its recovery streak against the US dollar, buoyed by fresh dollar injections from the Central Bank of Nigeria (CBN) aimed at easing pressure in the foreign exchange market.
At the official FX window on Friday, the local currency appreciated slightly, closing at ₦1,532.51 per dollar, compared to ₦1,534.52/$1 recorded the previous day. The appreciation was supported by a combination of foreign portfolio inflows, improved exporter supply, and corporate demand management measures.
Data from the CBN showed that during intraday trading, the naira touched a high of ₦1,535/$1 and a low of ₦1,529.75/$1, reflecting stronger liquidity conditions. The apex bank further injected USD 166 million into the market through authorized dealers to curb rising dollar demand.
Despite the official market’s stability, the parallel market reflected a different narrative. The naira closed at ₦1,550/$1 in the black-market segment, marking a modest week-on-week depreciation due to growing demand for business travel and personal travel allowances. This widened the exchange rate gap between the official and parallel markets to about ₦23 per dollar.
Meanwhile, Nigeria’s external reserves continued on an upward trajectory, climbing for the sixth consecutive week. The reserves rose by USD 431.86 million to reach USD 40.72 billion, according to updated CBN data.
Financial analysts project that the naira will maintain relative stability in the near term, supported by stronger forex inflows and deliberate policy actions. Experts at Cordros Capital noted that sustained foreign portfolio investor (FPI) interest, alongside higher non-oil export receipts, would reinforce the currency’s resilience.
“We expect steady capital inflows from FPIs given existing carry trade opportunities and improved investor confidence. Additionally, limited incentives for naira speculation and a pickup in non-oil exports should sustain FX stability,” Cordros Capital said in its weekly note.
With growing liquidity and reserves back on the rise, the naira is expected to remain range-bound, provided that dollar inflows continue to strengthen and demand-side pressures remain contained.
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