Market News

By : Helen Oji

Nigeria’s foreign exchange (FX) market recorded improved stability in April 2026 as the naira appreciated by 1.42 per cent against the dollar, gaining N19.67 to close at an average spot rate of N1,361.51/$ compared with N1,381.18/$ in March.

This is just as the Central Bank of Nigeria (CBN) intensified liquidity management through aggressive open market operations (OMO) bill issuances totalling N9.71 trillion in the month.

The OMO bill sales represented a 27.37 per cent or N2.09 trillion rise, compared with N7.62 trillion issued in March 2026, underscoring the apex bank’s sustained efforts to mop up excess liquidity from the financial system and support FX market stability amid lingering inflationary and currency pressures.

The latest market report also showed that exchange rate volatility eased significantly during the month, with the naira trading within a relatively narrow band of N1,341.01/$ and N1,389/$ in April, compared with a wider range of N1,345.00/$ to N1,425/$ recorded in March.

Analysts said the tighter trading range reflects improving confidence among investors and reduced speculative attacks on the local currency.

Analysts at Cordros Capital said the surge in OMO bill issuance was an indication of the apex bank’s commitment to maintaining tight liquidity conditions to contain inflation and stabilise the foreign exchange market.

They noted that elevated OMO rates have continued to attract portfolio inflows into fixed-income instruments, thereby improving dollar liquidity in the economy.

Also, Cowry Asset Management said the combination of aggressive liquidity sterilisation and improved transparency in the FX market contributed significantly to the moderation in exchange rate volatility.

According to them, the narrowing gap in exchange rate movements indicates that policy measures introduced by the monetary authority are gradually restoring confidence among foreign investors and local market participants.

For Comercio Partners analysts, the improved stability of the naira reflected easing panic demand in the FX market as liquidity conditions improved.

However, they warned that sustaining the current momentum would depend heavily on the country’s ability to generate stronger and more consistent foreign exchange inflows from oil exports, diaspora remittances and foreign direct investments.