The Nigerian naira has recorded its first appreciation against the United States dollar in both the official and parallel foreign exchange markets. According to data from the Central Bank of Nigeria, the currency strengthened to N1,445.39 per dollar on Tuesday, up from N1,448.44 on Monday. This represents a day-on-day appreciation of N3.05.

This gain marks the first time the naira has strengthened since November 26, 2025. The development is significant, as it indicates a potential shift in the currency’s trajectory after a period of depreciation. In the parallel market, the naira also gained ground, strengthening by N5 against the dollar to close at N1,470 on Tuesday, compared to N1,475 the previous day.

The improvement in the naira’s value comes as Nigeria’s foreign reserves continue to rise, reaching $44.67 billion as of November 28. This increase in reserves may have contributed to the currency’s appreciation, as it suggests a more stable economic environment. The naira’s depreciation on Monday had raised concerns about the currency’s trajectory, but Tuesday’s gain provides a more positive outlook.

The foreign exchange market is closely watched, as fluctuations in the naira’s value can have significant impacts on the economy. A stronger naira can make imports cheaper and increase consumer purchasing power, while a weaker naira can lead to higher prices and reduced economic activity. The Central Bank of Nigeria’s efforts to manage the currency and maintain economic stability are crucial in this context.

As the naira’s value continues to fluctuate, market watchers will be closely monitoring the currency’s performance. The rise in foreign reserves and the currency’s appreciation on Tuesday may indicate a positive trend, but ongoing economic challenges and global market volatility mean that the naira’s trajectory remains uncertain. Nevertheless, Tuesday’s gain provides a welcome respite for the Nigerian economy, and further developments will be closely watched in the coming days.