Market News

The Nigerian naira extended its rally on Monday, closing at N1,354.26 per U.S. dollar at the Nigerian Foreign Exchange Market (NFEM), after touching an intraday low of N1,352. The official rate appreciated by 0.88 per cent, according to updated data released by the Central Bank of Nigeria.

The local currency has been gaining momentum against the dollar as ongoing foreign exchange reforms begin to deliver results. For the first time in years, the apex bank is actively mopping up U.S. dollars from the market, a move analysts say is bolstering confidence in the naira and stabilising liquidity conditions.

Performance was also reflected in the parallel market, where the naira firmed slightly to close at N1,426 per dollar, underscoring improved sentiment across both the regulated and informal segments of the foreign exchange market.

The gains highlight growing traction in reforms and stronger inflows that have supported the currency’s resilience.

Market watchers note that the naira’s appreciation signals a shift in FX dynamics, with reforms aimed at tightening compliance, reducing speculative activity, and improving transparency beginning to take hold.

Analysts caution, however, that sustaining the rally will depend on consistent policy execution, continued inflows, and broader macroeconomic stability.