The Nigerian naira continued its upward momentum across both official and parallel foreign exchange markets in the week following the Sallah holidays, marking a notable appreciation trend against major currencies.
According to data from the Central Bank of Nigeria (CBN), the naira strengthened to N1,540/$1 on Tuesday, up from N1,551/$1 recorded before the holidays. On the parallel market, the naira also gained ground, closing at N1,605/$1 on Thursday before Eid, improving from N1,610/$1 on Wednesday. By Tuesday, it appreciated further to N1,600/$1, as reported by Bureau de Change operators.
The appreciation rally came after the Federal Government declared June 6 and 9 as public holidays to mark Eid-ul-Adha, providing a brief pause in trading activities.
Gains Across Major Currencies
The naira also posted gains against the British pound and the euro. Against the pound, it appreciated from N2,175/£1 at the start of the week to N2,145/£1 by Tuesday. However, it later dipped slightly to N2,210/£1 on Wednesday.
Against the euro, the naira gained from N1,810/€1 on Monday to N1,790/€1 by Tuesday in the parallel market. A mild decline followed, with the rate slipping to N1,815/€1 on Wednesday.
Post-Holiday Comparison
The post-Sallah rally contrasts with the naira’s performance after the Easter holidays in April 2025. At that time, the currency weakened to N1,606/$1 from N1,600.50/$1 in the official market, and in the parallel market, it depreciated to N1,615/$1 from N1,610/$1 pre-Easter.
This week’s appreciation is being interpreted by analysts as a sign of renewed confidence in Nigeria’s foreign exchange market, driven by improved FX supply and greater investor optimism. The continued narrowing of the gap between official and parallel market rates also suggests better alignment and potential stability in the currency market.
As the CBN continues reforms aimed at stabilizing the naira and addressing liquidity challenges, the recent rally may offer some relief amid persistent pressure on Nigeria’s foreign reserves and inflation outlook.
