The Nigerian Naira has recorded a notable surge against the US dollar, reaching a four-month high by breaking the N1520 per dollar mark in the foreign exchange market. This upward momentum reflects renewed investor confidence and improved forex liquidity, signaling a positive shift in Nigeria’s currency stability amid ongoing economic challenges.
Market analysts attribute the Naira’s rally to a combination of factors, including increased dollar inflows from the country’s oil exports and remittances, as well as effective interventions by the Central Bank of Nigeria (CBN). The CBN’s strategic sales of foreign currency through the Investors and Exporters (I&E) window have helped to narrow the gap between the official and parallel market rates, thus supporting a more balanced exchange rate environment.
Traders at the Lagos foreign exchange market reported that the Naira appreciated by approximately 1.5 percent within the week, a significant leap compared to previous months when the currency languished under pressure due to limited dollar supply and rising inflationary trends. This improvement has provided temporary relief to businesses reliant on foreign currency for imports and debt servicing.
Economic experts, however, caution that sustaining this positive trajectory requires continued policy consistency, diversification of the economy beyond oil, and measures to boost non-oil export earnings. The recent surge offers a window of opportunity for Nigeria to strengthen its external reserves, which have hovered around $35 billion, and to stabilize inflation that currently stands at double-digit figures.
Consumers and importers have welcomed the news, hopeful that a stronger Naira will translate into lower costs for imported goods and services, potentially easing the cost of living pressures faced by many Nigerians. Nonetheless, the Central Bank maintains a cautious stance, reiterating that the currency’s value remains vulnerable to global oil price volatility and external economic shocks.
As the Naira closes in on the N1520/$ mark, market watchers will be closely monitoring whether this rally can be sustained in the medium to long term, amid calls for deeper structural reforms and improved fiscal discipline by the government. For now, the currency’s upward movement offers a rare boost to Nigeria’s forex market, underscoring the delicate interplay of domestic policies and global economic forces.
