The naira appreciated to N1,367.5 per dollar on May 4, 2026, extending gains recorded in April and signaling a firmer start to the new month.
Data from the Central Bank of Nigeria (CBN) showed the currency strengthened in the first trading session of May after closing April at N1,374/$—marking the first April gain for the naira since 2024.
The uptick reflects improving stability in the foreign exchange market, despite persistent global currency pressures. Safe-haven demand continues to underpin the U.S. dollar amid ongoing geopolitical tensions.
CBN figures indicate the naira traded within a relatively narrow band, suggesting reduced volatility and more stable market conditions. Intraday trading ranged between N1,362/$ and N1,374.5/$, with an average rate of N1,365.89/$.
The performance also represents an improvement from earlier in April, when the currency traded at N1,376/$, following a March close of N1,387/$. After weakening at the start of April, the naira gradually strengthened, with gains carrying into early May—an indication of improved market sentiment and liquidity.
However, underlying pressures remain. Nigeria’s external reserves declined to $48.36 billion as of April 30, 2026, from $49.18 billion at the start of the month, pointing to ongoing constraints in foreign exchange supply.
Global currency markets remain volatile. The Japanese yen held steady amid speculation of intervention by Tokyo authorities, while the U.S. dollar gained on safe-haven demand linked to tensions in the Middle East. The euro traded at $1.1693, the British pound at $1.353, while the dollar index stood firm at 98.452. The Australian dollar hovered around $0.7168 ahead of a policy decision by the Reserve Bank of Australia, where further rate hikes are anticipated.
Earlier, CBN Governor Olayemi Cardoso said Nigeria’s gross external reserves rose to $50.45 billion as of February 2026, supported by stronger oil earnings and increased foreign inflows. He noted that ongoing monetary and foreign exchange reforms are aimed at boosting market confidence and improving liquidity.
Despite the recent dip in reserves—reportedly about $731 million within the first three weeks of April—the CBN maintains an optimistic outlook, projecting reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation efforts.
Market participants also note that the apex bank has sustained restrictions on Bureau De Change operators’ access to the official foreign exchange window, citing the need to maintain control and curb past abuses.
