LAGOS, NIGERIA — The Nigerian naira has appreciated against the US dollar, trading below the ₦1,500/$ threshold for the first time in over six months.
Data from the Central Bank of Nigeria (CBN) showed that the domestic currency closed at ₦1,497.46/$ on Monday, marking a 0.27 per cent gain from its previous close. The last time the naira traded at this level in the official market was in early March. The recovery follows a week in which the currency repeatedly tested the ₦1,500/$ mark.
The positive momentum was also seen in the parallel market, where the naira strengthened by 0.33 per cent, settling at ₦1,535/$. Analysts say the gains have been largely supported by strong foreign portfolio inflows, healthy external reserves, and continued policy interventions by the CBN.
Inflows and Reserves Support Naira’s Recovery
According to market reports, total foreign exchange inflows into Nigeria reached $550.90 million last week, with Foreign Portfolio Investments (FPIs) accounting for over half of that amount at $303.8 million.
AIICO Capital noted that “ample dollar liquidity from FPIs, oil exporters, and offshore flows” had underpinned the market’s positive tone. Cowry Asset Management Limited similarly attributed the naira’s recovery to “steady dollar inflows, CBN interventions, and stronger reserves.”
Nigeria’s gross external reserves have also shown a consistent upward trend, rising to $41.69 billion as of Friday. Experts say this is helping to boost market confidence and support the CBN’s efforts to stabilise the currency.
While the naira’s return below ₦1,500/$ signals improved market confidence, analysts warn that the sustainability of the recovery depends on structural reforms and policies that can attract more durable foreign direct investments rather than short-term portfolio flows.
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