The naira appreciated against the US dollar on Thursday as liquidity improved across Nigeria’s foreign exchange market, supported by rising external reserves and moderated demand for dollars.
Latest data from the Central Bank of Nigeria (CBN) showed that the exchange rate closed at ₦1,460.49 per dollar, a slight gain from ₦1,463.43 recorded previously. The spot market experienced intraday highs and lows of ₦1,464 and ₦1,458, respectively.
This improvement coincided with a rebound in Nigeria’s foreign reserves, which increased to $42.865 billion from $42.792 billion the previous day — reflecting higher crude prices and renewed investor confidence.
The reserve growth also comes as Nigeria seeks an upward revision of its OPEC production quota, currently set at 1.5 million barrels per day (mbpd). Despite labour disruptions, oil production slipped to 1.39 mbpd in September, down by 44,576 barrels from 1.43 mbpd in August, marking a second consecutive monthly decline.
Nevertheless, the uptick in oil prices offered a cushion. Brent crude futures surged by $2.91 (4.7%) to $65.50 per barrel, while the US benchmark, West Texas Intermediate (WTI), jumped 6.2% to trade above $61 per barrel — its biggest one-day gain since June 2024.
The rally followed the US government’s imposition of sanctions on major Russian oil companies, Rosneft PJSC and Lukoil PJSC, disrupting supply expectations and pushing prices higher. Analysts said the sanctions may also impact flows to major buyers like India, which could further tighten global oil supply.
With rising reserves and stable exchange market activity, traders expect the naira to maintain relative strength in the near term, provided foreign inflows and oil revenues continue their upward trend.
