By Boluwatife Oshadiya | July 21, 2026
Key Points
- The naira appreciated to ₦1,375.31 per dollar at the official market
- Nigeria’s gross external reserves climbed above $52 billion amid sustained FX inflows
- Higher oil prices and stronger interbank FX activity boosted confidence in the foreign exchange market
Main Story
The naira strengthened against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Tuesday as the country’s gross external reserves surpassed $52 billion, reinforcing confidence in foreign exchange liquidity.
According to data released by the Central Bank of Nigeria (CBN), the official exchange rate appreciated by 35 basis points to close at ₦1,375.3083/$, improving from ₦1,380.1093/$ recorded a day earlier.
Trading at the official market took place within an intraday range of ₦1,374 to ₦1,379 per dollar, reflecting improved liquidity conditions across the banking system.
The CBN’s latest market data also showed stronger activity in the interbank foreign exchange market. Total FX turnover rose by more than 21% to $322.64 million, compared with $266.23 million in the previous trading session, while the number of completed deals increased to 110 from 66.
Nigeria’s gross external reserves climbed to $52.024 billion, up from $51.942 billion, supported by sustained foreign exchange inflows, including proceeds from hydrocarbon exports. The higher reserve position provides additional buffers for the CBN to support exchange rate stability when necessary.
Meanwhile, developments in the international oil market also strengthened Nigeria’s external outlook. Brent crude traded above $90 per barrel, while U.S. West Texas Intermediate (WTI) hovered around $86 per barrel after geopolitical tensions in the Middle East intensified.
Oil prices surged by more than 2% following renewed hostilities involving the United States and Iran, with reports of attacks affecting regional infrastructure and renewed threats to shipping through the Strait of Hormuz, one of the world’s most important oil transit routes.
Higher crude oil prices typically improve Nigeria’s export earnings and foreign exchange inflows, although prolonged geopolitical instability could also increase global inflationary pressures.
What’s Being Said
“The increase in external reserves reflects sustained foreign exchange inflows and strengthens Nigeria’s capacity to support exchange rate stability,” the Central Bank of Nigeria said in its latest external reserves update.
What’s Next
- Investors will closely monitor the CBN’s foreign exchange interventions and reserve position in the coming weeks.
- Global oil prices remain sensitive to developments in the Middle East, with further disruptions capable of influencing Nigeria’s FX earnings.
- Market participants will watch whether stronger reserves translate into continued naira stability across official and parallel markets.
The Bottom Line: The combination of stronger foreign reserves, improved FX market liquidity and elevated crude oil prices provides near-term support for the naira. However, the currency’s longer-term stability will still depend on sustained capital inflows, disciplined monetary policy and continued growth in Nigeria’s export earnings.
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