The Nigerian naira appreciated significantly against the US dollar on Monday, buoyed by increased inflows from foreign portfolio investors (FPIs) that outpaced market demand, according to updated data from the Central Bank of Nigeria (CBN).
Official market records showed that the naira firmed up to ₦1,544.62 per dollar, gaining ₦5 amid heightened FX liquidity. Simultaneously, the currency strengthened by ₦10 in the parallel market, settling at ₦1,570 to the dollar.
The recent currency gains come as the CBN continues deliberations on the proposed discontinuation of FX sales to Bureau de Change operators—a move that could reshape Nigeria’s forex policy by the end of May.
Last week, the local currency closed at ₦1,549.35 per dollar, a gain of ₦3.76 compared to earlier sessions. Midweek activity saw the naira briefly trade at ₦1,539.72 per dollar, a reflection of investor confidence and fresh capital inflows, according to Coronation Research.
The apex bank revealed that it injected approximately $580 million into the market during May, a move aimed at strengthening the naira. Despite this, the naira recorded a minor dip on Friday, slipping to ₦1,549.35 per dollar.
Coronation Research noted that FPIs were the top contributors to the Nigerian FX market for the fourth consecutive week, signaling renewed investor interest in the economy following the Monetary Policy Committee’s (MPC) decision in May to maintain benchmark rates. This followed a credit rating upgrade in April that boosted investor sentiment.
In the same period, non-bank corporates contributed 37.36% of total inflows, exporters accounted for 23.08%, and other sources made up 0.57%. Notably, the CBN made no new FX contributions last week, likely due to the relative stability of the naira and ongoing global dollar weakness caused by US debt ceiling concerns.
