Naira Extends Rally as Nigeria’s Foreign Reserves Grow
The naira extends its rally against the US dollar and other Western currencies at the Nigeria Foreign Exchange Market (NEFM) as data show the country’s external reserves continue to gain momentum.
Foreign portfolio investors, exporters and non-bank corporates continue to keep the supply side strong, with the Apex Bank’s less aggressive FX interventions at the official window in recent times
The official rate closed at ₦1,357.26 per dollar, marking the third consecutive gain on record since the beginning of the week, reflecting the absence of pressure from international payments and related FX settlements.
Daily FX data released by the Central Bank of Nigeria (CBN) showed that the local currency spot rate closed at N1357.2615 per dollar on Wednesday from N1361.0497 the previous day.
Eligible FX transactions were consummated between N1350 and N1370 per dollar during the day amidst declining interbank foreign exchange turnover midweek.
The CBN reported that interbank FX turnover declined to $133.731 million across 136 deals, from $169.822 million the previous day.
A look at the updated data from the CBN showed that foreign reserves continue to increase with two consecutive inflows on record in June 2026, settling at $49.876 billion as of Tuesday.
The pace of inflows could push Nigeria’s external reserves above $50 billion this week, analysts at LSIntelligence Associates told MarketForces Africa in a chat on Wednesday.
The market anticipates foreign reserves to surge further, driven by higher FX receipts from hydrocarbon sales. While Middle East tension has softened, oil prices remain elevated – staying above the 2026 benchmark has strengthened Nigeria’s fiscal performance outlook.
Oil prices rose around 2% on Wednesday, extending gains from the previous session, as hostilities in the Middle East erupted anew and talks between Tehran and Washington showed little progress.
Brent futures were up $1.68, or 1.75%, at $97.68 a barrel, while U.S. West Texas Intermediate crude climbed $1.99, or 2.12%, to $95.75. Oil Prices Surge on Middle East Hostilities, Uncertain Outlook
