The Nigerian naira strengthened to N1,348/$ at the official foreign exchange market on Tuesday, supported by a broader weakness in the US dollar, which has fallen to a six-week low.
Data from the Central Bank of Nigeria (CBN) showed the local currency improved from N1,358/$ recorded on Monday, extending gains from last week’s close of N1,355.25/$. The appreciation reflects improving investor sentiment in global markets.
The dollar index slipped to 98.109, hovering near its weakest level in over six weeks, as easing geopolitical tensions boosted appetite for riskier assets and currencies, including emerging market units like the naira.
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Market sentiment has been shaped largely by developments in the Middle East. Earlier tensions involving the United States, Israel, and Iran had disrupted oil shipments through the Strait of Hormuz, driving up crude prices and triggering risk aversion. However, renewed signals of possible diplomatic engagement have helped calm markets, reducing demand for safe-haven assets such as the dollar.
The shift in sentiment has supported gains across currency and commodity markets. The euro traded close to a multi-week high at $1.1793, while the British pound hovered around $1.3574. Oil prices also eased, with Brent crude falling to $94.52 per barrel and US West Texas Intermediate settling at $90.64 after earlier declines.
Despite the naira’s recent gains, Nigeria’s external reserves continued a downward trend, slipping to $48.72 billion as of April 13, 2026, from $49.18 billion at the start of the month. The reserves remain a critical buffer for currency stability and external obligations.
On the macroeconomic front, the International Monetary Fund recently revised Nigeria’s 2026 growth forecast downward from 4.4 per cent to 4.1 per cent, citing global and domestic pressures. The Fund also projects a broader slowdown in global growth, with output expected to ease from 3.4 per cent in 2025 to 3.1 per cent in 2026.
Advanced economies are forecast to see marginal declines in growth, while the United States is expected to remain relatively resilient at 2.3 per cent in 2026. The United Kingdom’s economy is projected to expand by 0.8 per cent, while Germany is expected to recover modestly.
Looking ahead, the CBN maintains a cautiously optimistic outlook on Nigeria’s external reserves, projecting an increase to $51.04 billion in 2026 from $45.01 billion in 2025, despite recent short-term declines.
