The naira closed at N1,372/$1 at the end of May 2026, reflecting a marginal depreciation of 0.36 per cent compared with N1,367/$ recorded at the close of April.
Despite the slight monthly decline, the local currency posted a strong year-on-year gain against the dollar.
Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated by N213.50 against the dollar compared with N1,585.50/$ recorded at the end of May 2025, representing a 13.5 per cent annual gain.
The performance reflects improving stability in the foreign exchange market amid sustained monetary reforms, stronger FX liquidity and rising investor confidence.
Throughout May, the naira traded within a relatively narrow range despite global economic uncertainties and fluctuating demand pressures in the FX market.
The currency opened the month at N1,367.50/$ and strengthened to N1,358.01/$ on May 7, its strongest level during the month.
For most of May, the naira traded between N1,372/$ and N1,375/$ before closing at N1,372/$ on May 29.
The foreign exchange market was closed on May 27 and May 28 due to the Eid-el-Kabir public holidays.
Analysts said the narrow trading band indicates growing market stability after prolonged periods of volatility.
The naira’s performance also extended gains recorded in April, when the currency appreciated from N1,387/$ at the end of March to N1,374/$ at month-end.
Nigeria’s external reserves improved during the period, providing additional support for exchange rate stability.
Market participants attributed the naira’s improved performance to stronger FX liquidity, sustained policy reforms and improving confidence in the foreign exchange market.
The relative stability recorded over the past two months has strengthened expectations that exchange rate volatility may be easing.
At its May Monetary Policy Committee (MPC) meeting, the CBN retained the Monetary Policy Rate (MPR) at 26.5 per cent in a bid to sustain inflation control and support exchange rate stability.
The apex bank also retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent and 16 per cent for merchant banks, while maintaining the asymmetric corridor around the MPR at +500/-100 basis points.
According to the CBN, the decision was aimed at consolidating recent gains in inflation moderation and foreign exchange market stability.
