The Nigerian naira recorded a notable appreciation at the official foreign exchange window, gaining ₦17.45 against the U.S. dollar as stronger FX inflows improved liquidity conditions and supported the local currency.
Data from the Central Bank of Nigeria’s daily foreign exchange update showed that the naira strengthened by 125 basis points at the Nigerian Foreign Exchange Market (NFEM) during Tuesday’s trading session.
According to analysts at AIICO Capital Limited, the improvement was driven largely by increased supply from Foreign Portfolio Investors (FPIs) as well as contributions from domestic market participants. These inflows helped stabilize the market despite lingering global dollar pressures.
During the session, the naira traded within a range of ₦1,360.00/$ to ₦1,387.00/$ before closing at ₦1,372.91/$, reflecting improved confidence in the official FX market. AIICO Capital attributed the stronger close to rising external reserves and better FX availability.
Supporting the currency’s performance, Nigeria’s gross external reserves climbed to $46.59 billion, marking a day-on-day increase of $314.94 million, based on figures released by the apex bank.
Meanwhile, developments in global commodity markets also shaped investor sentiment. Crude oil prices rebounded after posting losses of more than 4% in the previous session, as traders weighed global supply dynamics and prospects of easing geopolitical tensions between the United States and Iran.
Brent crude rose by 2.68% or $1.77 to trade around $67.91 per barrel, while U.S. West Texas Intermediate (WTI) gained 3.12%, settling near $63.84 per barrel.
Gold prices also advanced sharply, fueling renewed interest in tokenized gold products within the digital asset ecosystem. However, analysts warned that despite growing popularity, tokenized gold investments carry custody and regulatory risks that investors often underestimate.
Spot gold surged by 515 basis points to $4,906.41 per ounce, while U.S. gold futures jumped 695 basis points to approximately $4,975.95 per ounce.
Looking ahead, AIICO Capital expects financial markets to remain volatile in the near term, driven by sentiment shifts around oil price stability, evolving geopolitical developments, and fluctuating risk appetite in precious metals.
