The Nigerian naira recorded a month-on-month gain in April 2026, marking its first positive April performance since the introduction of the Nigerian Autonomous Foreign Exchange (NAFEX) market.
According to data from the Central Bank of Nigeria (CBN), the naira closed April at ₦1,374 per US dollar, appreciating from ₦1,387/$ at the end of March. This represents a gain of ₦13 during the month.
The improvement signals a period of greater stability in the foreign exchange market, with reduced volatility and better liquidity conditions compared to previous months. The local currency traded within a relatively narrow band of ₦1,340 to ₦1,389 throughout April.
On a year-on-year basis, the naira showed even stronger performance, strengthening significantly from ₦1,602 per dollar recorded on April 30, 2025. The strongest rate in April 2026 was ₦1,341.01 per dollar, achieved on April 16.
Key Supporting Factors
Analysts attribute the naira’s resilience to several positive developments, including:
– Improved foreign exchange inflows from diaspora remittances and oil sector earnings
– Reduced speculative demand for dollars
– Sustained monetary policy tightening by the CBN
– Better liquidity management in the official FX market
The performance contrasts with March 2026, when the naira faced significant pressure before recovering to close at ₦1,387/$.
Despite the monthly gain, the CBN’s external reserves still recorded a drawdown of approximately $731 million in the first three weeks of April, falling from $49.18 billion to $48.45 billion. However, the apex bank remains optimistic, projecting that reserves could reach $51 billion by the end of 2026.
Market Implications
The naira’s appreciation in April is expected to help moderate import costs and provide some relief on inflationary pressures in the coming months. It also reflects growing confidence in the Central Bank’s management of the foreign exchange market, even as restrictions on Bureau De Change (BDC) operators continue.
While the positive April close is encouraging, analysts caution that sustaining this stability will depend on consistent FX inflows, higher oil production, and continued prudent monetary policies.
This development marks a notable shift from the consistent weakness the naira had shown in previous Aprils under the current FX regime, offering a cautiously optimistic signal for Nigeria’s macroeconomic environment heading into the second quarter of 2026.
