The Nigerian naira extended its gains in the foreign exchange market on Thursday, supported by higher inflows from foreign portfolio investors (FPIs) and intervention measures by the Central Bank of Nigeria (CBN).
Market data showed that increased supply of the U.S. dollar helped ease pressure on the local currency, with the apex bank reinforcing liquidity through FX sales. Offshore investors also participated actively in the open market operations, further boosting foreign exchange supply.
According to figures released by the CBN, the naira appreciated marginally, closing at ₦1,535.78 per dollar compared to ₦1,536.73 recorded on Wednesday. Trading data revealed intraday quotes ranging between ₦1,535.25/$ and ₦1,538.00/$, with the local unit appreciating by six basis points.
In its market commentary, AIICO Capital Limited noted that the improvement in FX liquidity at the official window was largely driven by the CBN’s undisclosed intervention. The institution highlighted that demand was outpaced by supply, resulting in the stronger closing rate.
Meanwhile, Nigeria’s external reserves climbed further, rising by $44.87 million to $41.04 billion as of August 21, 2025. Analysts predict that the gradual accumulation of reserves may help sustain rate stability in the near term.
On the international front, crude oil prices rallied on Thursday, lifted by stalled peace negotiations between Russia and Ukraine, coupled with stronger U.S. demand data. Brent crude futures advanced by 83 cents, or 1.2%, to $67.67 per barrel, while U.S. West Texas Intermediate (WTI) gained 81 cents, or 1.3%, to settle at $63.52.
Gold prices, however, edged lower as the dollar firmed. Spot gold slipped 0.3% to $3,337.95 per ounce, while U.S. gold futures dropped 0.2% to close at $3,386.50. Investors are now closely monitoring Federal Reserve Chair Jerome Powell’s upcoming address at the Jackson Hole symposium for potential guidance on rate cuts.
