Naira Strengthens To N1,484/$1 On Official Market

The naira continued its recent upward trend on Tuesday, appreciating to N1,484.14/$1 on the Nigerian Foreign Exchange Market (NFEM), up from N1,497.47/$1 on Monday, according to data released by the Central Bank of Nigeria (CBN).

Forex analysts attribute the strengthening of the naira to relatively low demand for dollars and CBN interventions, supported by healthy external reserves.

In a review of last week’s forex activity, Cowry Asset Management Limited noted:

“The foreign exchange market recorded stronger performance for the naira across key trading segments. At the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the local currency appreciated by 0.89% week-on-week to close at N1,501.50/$1, buoyed by improved liquidity and sustained dollar inflows.

Likewise, the parallel market posted a 1.85% gain, with the naira strengthening to an average of N1,510/$1. This broad-based uptick reflects renewed trader confidence and a moderation of speculative pressures in the informal market.”

Analysts at Commercio Partners attributed the rally to a combination of stronger demand for the Naira, reduced speculative trading, and improved foreign reserves.

“Nigeria’s external reserves stood at $41.66 billion on September 11, 2025 and have consistently grown in recent weeks, reflecting a healthier external position for the country. With reserves strengthening, speculative activity subsiding, and oil earnings supporting inflows, many market watchers believe the naira’s current rally has a stronger foundation compared to previous cycles of volatility,” the company said.

Reforms instituted by the Central Bank of Nigeria (CBN) to entrench transparency, accountability and improve Dollar access in the FX market are also expected to prop up the local currency.

The analysts added that the naira is expected to maintain its appreciation trend in the coming week, supported by steady dollar inflows, continued CBN interventions, and stronger external reserves.

They warned, however, that renewed speculative activity could trigger short-term volatility.

They also noted that bearish global oil demand forecasts may keep prices under pressure, but Nigeria’s resilient Bonny Light production and gradual reserve build-up provide buffers to sustain near-term currency stability.

Newtelegraphng