Nigeria’s currency, the naira, appreciated to N1,362 per dollar on Tuesday, sustaining its recent upward trend in the foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed the currency strengthened from N1,367.5/$ recorded on Monday, signalling continued stability and improved sentiment in the official market.
The latest gain comes amid softer global dollar conditions, as easing geopolitical tensions weighed on the U.S. currency across major markets.
CBN figures indicate that the naira has maintained consistent gains on both day-to-day and week-on-week bases, supported by relatively improved demand and supply dynamics in the FX window.
Intraday trading on Tuesday ranged between N1,362/$ and N1,370.5/$, with an average rate of N1,366.27/$. This compares with Monday’s range of N1,362/$ to N1,374.5/$ and an average of N1,365.89/$.
On a weekly comparison, the naira has also strengthened, improving from N1,383/$ recorded last Tuesday to its current level, underscoring a firmer short-term trajectory.
However, underlying pressures persist. Nigeria’s external reserves fell to $48.36 billion as of April 30, 2026, highlighting ongoing vulnerabilities despite the currency’s recent gains.
Global currency markets recorded mixed movements, with the dollar index slipping to 98.299. The euro rose to $1.1714, while the British pound traded at $1.35685. The Australian and New Zealand dollars also advanced to $0.7208 and $0.5905, respectively, while the Japanese yen stood at 157.62 per dollar.
The dollar’s weakness followed signals from U.S. officials suggesting progress toward a potential agreement with Iran, easing geopolitical risks and contributing to a decline in oil prices. U.S. crude dropped by more than $2, with West Texas Intermediate hovering around $100 per barrel.
While the naira’s appreciation offers short-term relief, analysts note that broader macroeconomic fundamentals—particularly external reserves and capital inflows—remain critical to sustaining the momentum.
Earlier data showed Nigeria’s reserves declined by about $731 million within the first three weeks of April.
CBN Governor Olayemi Cardoso had, however, disclosed that gross external reserves rose to $50.45 billion as of February 2026, driven by improved oil receipts and increased foreign inflows. He added that ongoing monetary and foreign exchange reforms are aimed at boosting liquidity and strengthening investor confidence.
The apex bank remains optimistic, projecting reserves could reach $51 billion by year-end as part of its macroeconomic stabilisation strategy.
Meanwhile, the CBN raised N1.92 trillion at its April Open Market Operations (OMO) auction, with stop rates peaking at 21.90%, reflecting sustained monetary tightening and robust investor appetite.
