Naira gains week-on-week to N1,391/$ as external reserves rise 

The Naira recorded a week-on-week gain to close at N1,391/$ in the official foreign exchange market, supported by improved liquidity conditions and a rise in the country’s external reserves.

This is according to data from the Central Bank of Nigeria’s (CBN) website. The data show mixed performance of the currency over the trading week.

What the data is saying 

The naira strengthened consistently in the official market during the week, reversing losses seen in the previous trading period.

Available data indicate a gradual improvement in pricing as demand-supply dynamics in the FX market showed signs of stability.

• The naira closed at N1,391/$ on Friday, down from N1,385/$ on Thursday.
• The naira traded between N1,392/$ and N1,381/$ during the session, with a simple average rate of N1,387.12/$, according to CBN data.
• Earlier in the week, it traded at N1,394/$ on Wednesday, N1,409.5/$ on Tuesday, and N1,416.5/$ on Monday.
• On a week-on-week basis, the currency appreciated from the previous week’s closing rate of N1,421.9/$.

This performance demonstrates sustained gains in the official market and highlights a steady recovery trajectory for the naira.

More Insights 

The naira’s appreciation was not limited to the official window, as movements in the parallel market also reflected reduced volatility.
A narrowing gap between official and street rates pointed to improved alignment across FX segments.

• In the parallel market, the naira closed at N1,453/$ on Friday, strengthening from N1,490/$ on Thursday.
• Data from Nairametrics Research showed that the disparity between the official and parallel markets widened to N105 on Thursday.
• The gap narrowed significantly to N62 on Friday, easing from its highest level since 5 February 2025.

The reduced spread between markets suggests improving confidence and lower speculative pressure on the local currency.

What you should know 

Nigeria’s rising external reserves have played a key role in supporting the naira’s recent rally.
The steady build-up of reserves is viewed as critical to strengthening foreign exchange buffers and enhancing the Central Bank’s capacity to manage volatility.

• Nigeria’s external reserves climbed to $46.18 billion during the week.
• Nairametrics reported last week that reserves crossed the $46 billion mark for the first time in nearly eight years.
• The CBN has projected that reserves will continue to rise in 2026 on the back of stronger external inflows and domestic structural reforms.
• According to the apex bank’s estimates, external reserves are forecast to reach $51.04 billion in 2026, up from an estimated $45.01 billion in 2025.
• The CBN noted that reforms in the FX market would improve efficiency and transparency, narrow the premium between the NFEM and Bureau De Change (BDC) rates.

These developments reinforce expectations of improved FX market stability and sustained medium-term support for the naira.