The naira strengthened to N1,315 per dollar at Nigeria’s official foreign exchange market on Thursday, marking its strongest performance since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS).
Data from the Nigerian Foreign Exchange Market (NFEM), the country’s official FX market, showed that the local currency appreciated by 0.84 percent from the N1,326 per dollar recorded on September 2.
The latest appreciation brings the naira back to the N1,300 level for the first time since April 2024, underscoring the recent improvement in the currency’s performance against the US dollar.
The naira also recorded gains at the parallel market, where it traded at N1,400 per dollar on Friday, compared with N1,410 per dollar on Thursday.
The strengthening of the currency across both segments of the foreign exchange market comes amid a significant improvement in Nigeria’s external reserves.
According to the CBN, the country’s foreign exchange reserves stood at $54.08 billion as of Thursday, their highest level in more than 17 years.
The reserves have risen substantially from the $45.56 billion recorded on January 2, representing an increase of $8.51 billion, or 18.69 percent, since the beginning of the year.
The combination of stronger external reserves and the naira’s recent gains could signal improved liquidity conditions in the foreign exchange market, although the sustainability of the trend will depend on factors including dollar supply, crude oil earnings and broader economic conditions.
The naira’s movement remains closely watched by businesses and consumers because of its impact on import costs, inflation, production expenses and the wider Nigerian economy.
