The Nigerian naira recorded its strongest performance in the official foreign exchange market since May 2024, appreciating to N1,394 per US dollar on Wednesday amid signs of improved liquidity and temporary easing of demand pressures.
According to data published on the Central Bank of Nigeria (CBN) website, the naira closed at N1,394/$1 in the Nigerian Foreign Exchange Market (NFEM), up from N1,409.50/$1 the previous day. The gain marks a notable reversal from recent volatility and places the currency at levels last seen on May 29, 2024, when it traded at N1,329.65 per dollar.
The appreciation reflects short-term stability at the official window, supported by ongoing CBN interventions, rising external reserves, and improved dollar inflows from oil receipts and other sources. Market analysts say the movement offers cautious optimism, even as structural FX challenges including unmet demand outside regulated channels persist.
In the parallel (black) market, the naira traded slightly firmer at around N1,490 per dollar on Wednesday, compared with N1,491 the day before. This widened the gap between official and informal rates to N96 — a level that continues to highlight distortions and arbitrage opportunities in Nigeria’s multi-tiered FX system.
The stronger official rate provides relief to importers, businesses, and households reliant on formal FX channels for international payments, education, healthcare abroad, and raw material imports. A more stable or appreciating naira also helps moderate imported inflation and supports the CBN’s efforts to anchor price expectations.
While the recent gains signal progress in FX management, analysts caution that sustainability will depend on consistent dollar supply, disciplined liquidity conditions, and avoidance of external shocks. The parallel market premium remains a key indicator of unresolved demand pressures and limited access to official FX for many end-users.
Nigeria’s external reserves, which have remained above $46 billion in recent weeks, continue to offer a buffer for interventions. The CBN has maintained a tight policy stance to support naira stability while gradually allowing market forces to play a greater role.
Market participants will watch closely to see if the naira can hold or build on these levels in the coming sessions, particularly as global dollar dynamics and domestic inflows evolve. For now, the N1,394 close represents a welcome milestone the strongest official performance in over 20 months and a reminder that, with the right conditions, the currency can show resilience even in challenging times.
