The naira continued its upward momentum against the dollar at the official foreign exchange market on Thursday, reflecting cautious optimism in Nigeria’s financial sector.
Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated to N1,372.31 per dollar, compared to N1,373.34 recorded previously. Though the gain was modest, analysts say it signals improved liquidity and confidence in the market, following weeks of volatility.
Market watchers attribute the strengthening of the naira to a combination of factors, including increased dollar inflows from oil revenues, tighter monetary policies, and ongoing reforms aimed at stabilizing the foreign exchange system. The CBN has recently intensified interventions to curb speculation and ensure transparency in forex transactions, moves that appear to be yielding gradual results.
For businesses and households, even small improvements in the exchange rate are significant. Importers, who have struggled with rising costs due to currency depreciation, welcomed the development, while consumers hope the gains will eventually ease inflationary pressures on goods and services.
Financial experts caution, however, that sustaining the naira’s recovery will require consistent policy measures and stronger economic fundamentals. They note that global oil prices, foreign investment flows, and Nigeria’s fiscal discipline will remain key determinants of the currency’s long-term stability.
The latest appreciation adds to a series of marginal gains recorded in recent weeks, raising hopes that the naira may be entering a more stable phase ahead of mid-year economic reviews.
