The naira recorded further gains on Monday, rallying strongly against major foreign currencies on the back of sustained growth in Nigeria’s foreign exchange reserves and improved dollar inflows.
At the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the local currency closed at ₦1,210 per dollar, appreciating from last week’s average of ₦1,230. Similarly, at the parallel market, the naira traded within a band of ₦1,215–₦1,225, indicating increased stability in the forex space.
Currency traders attributed the naira’s rebound to rising dollar liquidity, boosted by improved crude oil receipts, enhanced remittance inflows, and tighter monetary policies by the Central Bank of Nigeria (CBN).
“The market is responding positively to sustained interventions and higher foreign exchange supply. With reserves climbing steadily, confidence is returning to the system, and speculative demand is reducing,” said a bureau de change operator in Abuja.
Latest figures from the CBN showed that Nigeria’s external reserves rose to $36.7 billion last week, their highest in months, reflecting stronger oil exports and inflows from foreign investors.
Analysts say the rally signals renewed optimism for the naira, though they caution that maintaining the momentum will require consistency in fiscal and monetary reforms.
Financial experts have urged the government to consolidate gains by addressing structural issues in the economy, diversifying exports, and strengthening confidence in the forex market.
For ordinary Nigerians, the naira’s recovery offers some relief, with reports of slight price corrections in imported goods, though inflationary pressures remain high.
