The Nigerian naira maintained its strength against the British Pound Sterling, opening trading at N1,823/£1 in the official foreign exchange market.
According to the latest data from the Central Bank of Nigeria (CBN), the naira closed at N1,823/£1 on Friday, June 5, 2026, reflecting a modest recovery from the approximately N1,845/£1 recorded at the beginning of June.
The appreciation comes amid the CBN’s ongoing liquidity management measures aimed at stabilising the foreign exchange market. The Monetary Policy Rate (MPR) remains at 26.5 per cent, while the Cash Reserve Ratio (CRR) has been retained at 45 per cent as part of efforts to curb excess liquidity and support the local currency.
Analysts note that the outlook for the GBP/NGN exchange rate will continue to depend on the CBN’s monetary policy stance, foreign exchange inflows, and developments in the energy sector. Nigeria’s foreign reserves, estimated at about $50 billion, have provided the apex bank with greater capacity to intervene in the FX market and defend the naira when necessary.
Higher crude oil prices have also strengthened the country’s external reserves, improving foreign exchange liquidity and supporting the local currency.
Market observers point out that while the British pound gained against the US dollar in offshore markets last week, the naira’s improved domestic performance limited the pound’s gains in Nigeria. This reflects the influence of local dollar liquidity conditions on the GBP/NGN exchange rate.
Despite recent gains, pressure remains on the foreign exchange market due to sustained demand from manufacturers, importers and service providers. The CBN’s interventions and ongoing reforms are aimed at increasing foreign currency supply through formal banking channels and narrowing market distortions.
While the official exchange rate has remained within the N1,810/£1 to N1,815/£1 range in recent sessions, traders are also monitoring developments in the parallel market, where the pound has continued to trade above N1,850/£1.
Going forward, movements in global oil prices and foreign exchange inflows are expected to play a key role in determining the naira’s trajectory against major international currencies. A sustained increase in energy revenues could further support the local currency, while weaker oil market conditions may place renewed pressure on the exchange rate.
