Naira Gains 4.42% in 4 Months as FX Reforms Hold
The naira gains 4.42% in four months as FX reforms hold despite oil price volatility and declining external reserves. Nigeria’s gross external reserves had hit a 2009 high of $50.02 billion, but retreated due to significant outflows related to foreign investors’ exits and debt service costs.
In April, the Nigerian foreign exchange market sustained its positive momentum, with the naira appreciating by 0.86% month-on-month at the official window to close at ₦1,374.94/$1, compared to ₦1,386.72/$1 at the end of March, Cowry Asset said in its latest report.
Analysts said the parallel market mirrored this positive trend, with the naira appreciating to ₦1,373/$1 in April, from ₦1,398/$1 in March, representing a 1.82% month-on-month gain.
On a year-to-date basis, Cowry Asset said the Naira has strengthened by 4.42% within the first four months of 2026, reflecting sustained FX stabilisation efforts by the Central Bank of Nigeria, supported by improved liquidity, stronger autonomous inflows, and better price discovery.
At the Nigerian foreign exchange market, Naira strengthened to a mid-month high of ₦1,341.01/$1 on April 16 amid softer global dollar conditions, before easing to ₦1,374/$1 by month-end on renewed corporate demand.
Analysts said at the parallel market, the naira weakened to about ₦1,460/$1 on April 10, before strengthening significantly to a monthly low of ₦1,330/$1 on April 16, supported by a reduction in speculative pressures.
Developments in the global oil market remained a key external influence, according to Cowry Asset. Nigeria’s flagship crude, Bonny Light crude, traded at $135.62 per barrel at the end of March, rose to a peak of $137.01/b on April 7, before declining to $128.13/b at the end of the month, reflecting heightened volatility driven by shifting geopolitical dynamics and intermittent progress in ceasefire discussions involving the United States and the Middle East.
Similarly, Brent crude settled at $114.01 per barrel (b), down from $118.35/b in March, while West Texas Intermediate (WTI) closed at $105.07/b, up from $101.38/b.
The divergence in price movements reflects ongoing disruptions to Persian Gulf supply routes amid the unresolved U.S.–Iran tensions, with Brent remaining more exposed to Middle East supply risks, while stronger U.S. inventories helped moderate gains in WTI, sustaining the Brent-WTI spread.
On the external reserves front, Nigeria recorded a drawdown of approximately $880 million in April, with reserves declining from $49.24 billion in March 2026 to $48.36 billion by April 2026.
The most significant depletion occurred in early April, largely attributed to foreign exchange interventions and external debt servicing obligations, the investment firm stated. CBN Foreign Subsidiary Rule Sparks N1.92trn Loss on NGX
