The naira strengthened, remaining below the N1,500/$ mark for 10 straight trading sessions at the official market, according to data from the Central Bank of Nigeria.
The local currency first breached the N1,500/$ threshold in over six months on September 15, closing at 1,497/$. It has since gained further, ending Friday’s trading at 1,480/$.
Meanwhile, the naira also showed positive momentum in the parallel market, appreciating 0.13% to an average of 1,510/$.
Over the past week, Nigeria’s external reserves provided additional support, rising 0.47% to $42.23 billion from $42.03 billion. Analysts said the increase strengthens the Central Bank’s capacity to manage supply-demand gaps and reinforces confidence in the naira’s near-term stability.
Reviewing the naira’s performance over the past week, AIICO Capital noted that improved liquidity from local participants, oil inflows, and offshore portfolio investors underpinned the currency’s continued rally.
“Early sessions opened actively, with bids largely matching available supply, anchoring trades around N1,492–N1,495/$. Midweek, tight demand and supply dynamics initially pressured the market, pushing the rate to N1,498.00/$, before improved local dollar flows and modest CBN interventions (estimated at $20m across sessions) restored calm.
“Toward the week’s close, liquidity conditions remained favourable as FPI inflows sustained an offered market tone, driving the naira firmer into the N1,471–N1,487/$ range. Overall, the currency appreciated by c.49 bps w/w to close at ₦1,480.66/$ at the NAFEM,” read the report.
The report added that the recent stability in the FX market is expected to continue in the near term, as the CBN fine-tunes its policies in tandem with FGN fiscal measures designed to support liquidity.
Cowry Asset Management Limited expressed similar views, noting that “Looking ahead, the naira is expected to stay relatively stable across markets, supported by stronger FX inflows, reserve build-up, and sustained Central Bank of Nigeria interventions.”
