The Nigerian naira extended its gains against the United States dollar at the official foreign exchange window on Thursday, strengthening further amid a continued rise in the country’s external reserves.
Data released by the Central Bank of Nigeria showed the local currency closed at N1,357.65 to the dollar on Thursday, an improvement from N1,360.58 recorded at the close of business on Wednesday. The movement represents a day-to-day appreciation of N2.93.
The parallel market mirrored the trend, with the naira gaining N5 to Trade at N1,425 per dollar on Thursday, compared with N1,430 the previous day.
The appreciation coincides with a notable increase in Nigeria’s foreign reserves, which climbed to $52.19 billion on Wednesday, according to figures from the apex bank. The reserve position has been on an upward trajectory in recent weeks, providing a buffer that supports the central bank’s interventions in the foreign exchange market.
Wednesday’s session had already delivered a positive outing for the naira, which posted a N4.31 gain at the official window. The consecutive days of strengthening suggest improving liquidity conditions and sustained demand management by the monetary authority.
Market analysts attribute the recent stability to a combination of improved dollar inflows, including crude oil receipts and remittances, alongside the central bank’s continued efforts to clear a backlog of matured forward contracts. The convergence between the official and parallel market rates, while still a gap, has narrowed in recent sessions, signalling growing confidence in the reform trajectory.
The central bank has maintained its commitment to a market-determined exchange rate regime, emphasising transparency and price discovery. Thursday’s data will likely reinforce expectations that the naira’s recent volatility is easing, though stakeholders caution that sustained stability will depend on structural reforms, fiscal discipline, and consistent foreign exchange supply.
With reserves above the $52 billion mark, the central bank retains significant firepower to defend the currency against speculative attacks. However, the focus remains on deepening the market’s structural foundations to ensure that gains are not solely reliant on central bank intervention.
