The Nigerian naira reached a six-month peak on Monday, trading at N1,506.84 per US dollar on the official foreign exchange market, bolstered by a steady supply of dollars.
This marks the strongest level for the naira since March 5, 2025, when it traded at N1,500.80 against the dollar.
According to data from the Central Bank of Nigeria (CBN), the naira appreciated by 0.5%, gaining N8.02 from Thursday’s rate of N1,514.86 at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, commonly referred to as the black market, the naira also gained ground, appreciating by N15 to close at N1,520 per dollar on Monday, compared to N1,535 the previous week.
Guaranty Trust Bank (GTBank) reported an exchange rate of N1,520 per dollar for international transactions on Monday, a N13 improvement from N1,533 quoted on Thursday.
Analysts at Coronation Merchant Bank noted that the naira’s exchange rate is expected to remain within the N1,500 to N1,600 range, supported by growing confidence among foreign portfolio investors (FPIs).
Last week, the Nigerian Autonomous Foreign Exchange Market (NAFEM) saw its reference rate improve by 6.59% from the prior session, closing at N1,514.87 per dollar.
The naira’s relative stability in the forex market has been driven by increased dollar inflows from FPIs.
In the first quarter of 2025, total foreign exchange inflows into Nigeria rose by 4% quarter-on-quarter and 26% year-on-year, reaching $29 billion. Data from FMDQ Group, used as a proxy, shows FPI inflows surged by 4% quarter-on-quarter and 101% year-on-year to $4.9 billion, according to FBNQuest analysts.
