Naira Sees Market-Wide Rally as FX Users Price in Projections
The naira experienced a market-wide rally on Thursday amidst projections that the Nigerian economy will expand more strongly than in past years as reforms produce results.
The exchange rate touched an intraday low of N1,418 per dollar, reflecting the absence of significant international payment pressures. The local currency hit an intraday high of N1422 before closing relatively stronger, according to daily FX update released by the Central Bank.
At the official window, the Naira on Thursday strengthened marginally by 5 bps, or ₦0.75 against the US dollar, closing at N1,419.28/$ at the Nigerian Foreign Exchange Market (NFEM).
The appreciation was supported by relatively improved supply conditions, which helped to moderate demand pressures, as the Naira traded within a narrow band during the session.
The naira appreciated to N1,465/$ in the parallel market, indicating improved currency sentiment across both the regulated official segment and the informal foreign exchange market.
The CBN and leading economists in Nigeria have projected stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, citing improved macroeconomic fundamentals and reform impacts.
The projection was made on Thursday at a hybrid roundtable organised by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies with B. Adedipe Associates.
CBN Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, said real GDP growth was projected at 4.49 per cent in 2026.
MarketForces Africa recalled that the International Monetary Fund forecasted that Nigeria’s economy to grow by 4.2% in 2026, driven by higher oil production, improved security, and sustained policy discipline.
Elsewhere, the External Reserve added $42.88 million to the previous day’s balance, bringing total reserves to $45.82 trillion, supported by inflows from across sources amidst an increase in global prices of oil.
Global Oil prices slid more than $3 and were poised to end a five-day streak of gains on Thursday after U.S. President Donald Trump said the crackdown on protesters in Iran was easing, allaying concerns over potential military action against Iran and oil supply disruptions.
As uncertainties eased, Brent crude fell over 4.3%, hovering around $63.60 per barrel, while U.S. West Texas Intermediate (WTI) fell at least 4.5%, to around $59.05.
Similarly, gold prices declined amidst weaker-than-expected U.S. weekly jobless claims data boosted the dollar, while U.S. President Donald Trump’s moderated tone on Iran further weighed on safe-haven demand for the metal.
The spot gold price eased 11 bps to $4,615.64/oz, while U.S. gold futures followed, easing by 26bps to $4,623.76/oz. Analysts expect the oil market to trade cautiously to bearish tomorrow amid military threats and potential supply disruptions, with gold providing haven.
