By BizWatch Nigeria
Key Points
- Naira appreciated by 67 basis points against the U.S. dollar
- Official exchange rate improved to ₦1,357.34/$
- Stronger local currency demand supported market performance
- External reserves declined slightly to $48.33 billion
- Global crude oil prices dropped sharply amid easing Middle East tensions
Main Story
The Nigerian naira appreciated significantly against the United States dollar at the Nigerian Foreign Exchange Market (NFEM), supported by improved market sentiment and sustained interventions by the Central Bank of Nigeria (CBN).
Official market data showed the local currency gained ₦9.22 against the dollar during Wednesday’s trading session to close at ₦1,357.34/$.
The appreciation represented a 67-basis-point improvement from the previous trading session, reflecting stronger demand for the naira by both domestic and foreign market participants.
During intraday trading, the local currency traded within the ₦1,350/$ to ₦1,365/$ band before settling stronger at the close of business.
The latest performance comes amid ongoing efforts by the CBN to stabilise the foreign exchange market through periodic interventions, tighter liquidity controls, and reforms targeted at improving FX market transparency.
Meanwhile, Nigeria’s external reserves declined slightly by $8.72 million to $48.33 billion as of May 5, 2026, compared to the previous level of $48.34 billion.
In the global commodities market, crude oil prices fell sharply to their lowest levels in about two weeks following growing optimism over a possible diplomatic breakthrough between the United States and Iran.
Brent crude declined by 7.26% to trade around $101.89 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 7.03% to approximately $95.08 per barrel.
Analysts said expectations of easing geopolitical tensions in the Middle East contributed to the sharp decline in oil prices, reducing concerns about supply disruptions.
Gold prices, however, traded higher amid shifting investor sentiment in global markets. Spot gold gained 2.11% to trade around $4,691.05 per ounce, while U.S. gold futures hovered near $4,703.10 per ounce despite a slight decline in futures pricing.
What’s Being Said
Market analysts attributed the naira’s appreciation to improved FX liquidity conditions and continued confidence in the CBN’s market management strategy. They also noted that developments in the global oil market remain critical for Nigeria’s external earnings outlook and exchange rate stability.
What’s Next
Investors are expected to closely monitor movements in global oil prices, external reserves, and future CBN interventions for indications of the naira’s near-term direction. Analysts believe the local currency could maintain relative stability if foreign exchange inflows improve and global energy market volatility eases further.
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