The Nigerian naira appreciated at the official foreign exchange market on Monday, closing at ₦1,418 per dollar at the Nigerian Foreign Exchange Market (NAFEM) window, supported by easing demand pressures and a weaker US dollar globally.
The local currency’s performance reflected a broader selloff in the US dollar against major currencies, as geopolitical uncertainties and geoeconomic risks weighed on investor sentiment.
Data published by the Central Bank of Nigeria (CBN) showed that the naira settled at ₦1,418.95 per dollar, buoyed by inflows from exporters and non-bank corporates. Foreign portfolio investments continued to account for a significant share of dollar supply at the official window, alongside active intervention by the apex bank.
According to market analysts, the broad US Dollar Index (DXY) has remained under sustained pressure, slipping below the 98.00 mark. MUFG Research noted that the index is now trading around a technically sensitive level, with further declines potentially ushering in an extended period of dollar weakness.
While official market conditions supported the naira’s appreciation, views on the currency’s medium-term outlook remain mixed. Analysts at Broadstreet pointed to persistent volatility in global crude oil prices and uncertainties surrounding domestic oil production as factors that could influence future exchange rate stability.
Geopolitical risks have also intensified following reports that US President Donald Trump ordered the deployment of additional US naval assets to the Middle East. The move has reignited speculation over possible military action involving Iran, adding to global market uncertainty.
Meanwhile, Nigeria’s external buffers have continued to strengthen. Latest figures from the CBN indicate that the country’s gross external reserves have surpassed the $46 billion threshold, bolstered by sustained inflows from crude oil exports and related revenue streams.
Analysts attributed the reserve accretion to improved oil production levels and relative price stability recorded in the previous year, factors that have enhanced foreign exchange receipts and strengthened the CBN’s capacity to support the naira.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that Nigeria’s average crude oil production, including condensates, stood at 1.64 million barrels per day in 2025. This represents a 5.81 per cent increase compared to the 1.55 million barrels per day recorded in 2024.
In contrast to gains at the official market, the naira weakened in the parallel market, where the spot rate declined by 0.40 per cent to ₦1,481 per dollar, highlighting continued segmentation between the official and informal foreign exchange segments.
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