The Nigerian naira strengthened to N1,355 per US dollar on the official foreign exchange market on Monday, continuing a recovery trend that saw it appreciate from N1,363.5/$ on Friday. This level represents the currency’s highest value since February 23, 2026, when it closed at N1,353.5/$, based on data from the Central Bank of Nigeria (CBN). The local currency has now risen for five consecutive days, closing at N1,373.5/$ on Wednesday and N1,370/$ on Thursday, amid relatively stable market conditions. Intraday trading on Monday ranged from N1,365.35/$ to N1,354/$, indicating consistent activity without significant volatility.
This outlook is supported by Nigeria’s growing external reserves, which the CBN cites as a key stabiliser. Net foreign exchange reserves increased to $34.80 billion by the end of 2025, while gross reserves rose to $50.45 billion as of February 2026. The boost stems from enhanced oil revenues and higher foreign inflows, providing a larger buffer against external demand pressures. CBN Governor Olayemi Cardoso confirmed that ongoing monetary and foreign exchange reforms target improved investor confidence and greater market liquidity, with projections in the bank’s 2026 macroeconomic outlook suggesting reserves could reach $51.04 billion, further aided by oil sector performance.
Global currency movements also influenced domestic sentiment. Geopolitical tensions involving Iran and their potential effects on energy markets kept investors alert. In early Asian trading, the euro fell 0.12% to $1.1492, and the British pound dropped 0.1% to $1.33. The dollar index remained unchanged at 99.913, while the Australian dollar softened slightly before a Reserve Bank of Australia interest rate decision, adding to a cautious global environment.
The naira’s sustained appreciation reflects a combination of domestic policy measures and favourable external dynamics. With reserves on an upward trajectory and reforms aimed at deepening forex market efficiency, the currency’s resilience may continue, offering prospects for greater economic stability in Nigeria amidst fluctuating global conditions.
