The Nigerian naira strengthened against the U.S. dollar on Wednesday in the official foreign‑exchange market, according to data released by the Central Bank of Nigeria (CBN). The official rate moved to N1,357.34 per dollar, an improvement of N9.22 from the N1,366.56 recorded on Tuesday.
The appreciation follows a brief reversal on Tuesday, when the naira weakened after the week began with gains in the official market. In the parallel black‑market segment, the currency remained unchanged at approximately N1,395 per dollar, matching the level observed the previous day.
The CBN’s latest foreign‑exchange report shows that Nigeria’s external reserves have continued to decline, standing at $48.33 billion as of 5 May 2026. The drop in reserves underscores ongoing pressure on the country’s balance of payments and highlights the importance of stabilising the official exchange rate.
The modest official‑market rally appears to be driven by a combination of factors, including recent monetary‑policy adjustments and the government’s ongoing efforts to tighten liquidity. Earlier this month, the central bank raised its policy rate to combat inflation, which has hovered above 30 % for several months. Higher interest rates tend to attract short‑term capital inflows, providing support for the naira in the official market.
Nevertheless, the persistence of a parallel market rate that is roughly 3 % weaker than the official rate suggests limited transmission of official‑market dynamics to the broader economy. Traders and importers continue to rely on the black market for foreign‑exchange needs, reflecting lingering confidence gaps and structural constraints in the formal system.
Analysts note that a sustained narrowing of the official‑black‑market spread would be a positive signal for foreign‑exchange stability and could ease pressure on Nigeria’s dwindling reserves. For now, the day‑to‑day gain of N9.22 is modest, but it marks a temporary reversal of the depreciation trend that has characterised recent weeks.
The development will be closely watched by investors, policymakers and international partners as Nigeria seeks to manage its foreign‑exchange outlook amid high inflation, tight monetary conditions and ongoing reserve depletion. Continued data releases from the CBN will provide further insight into whether the naira’s appreciation can be maintained and whether the gap between official and parallel rates will narrow in the coming weeks.
