JUST IN: Naira Strengthens to N1,497.5/$ at Official Market

 JUST IN: Naira Strengthens to N1,497.5/$ at Official Market

The Naira gained marginally against the United States dollar on Monday, closing at N1,497.5/$ at the official foreign exchange market, according to fresh data released by the Central Bank of Nigeria (CBN). This marks an appreciation of N4.03 compared to last Friday’s closing rate of N1,501.5/$.

The modest improvement signals continued efforts by the CBN to stabilize the local currency amid persistent volatility in the foreign exchange market. In recent months, the apex bank has rolled out a series of policy interventions aimed at narrowing the gap between the official and parallel market rates, enhancing dollar liquidity, and restoring investor confidence.

Analysts note that while the gain may appear marginal, it reflects the impact of tighter monetary measures, including sustained interventions in the FX market, reforms to curb speculative activities, and efforts to boost diaspora remittances through formal channels.

Despite this progress, pressure on the Naira remains elevated as demand for dollars continues to outpace supply, driven largely by import obligations, foreign portfolio outflows, and limited inflows of foreign direct investment. Market watchers caution that without stronger dollar inflows from crude oil earnings, non-oil exports, and sustained capital importation, the currency may struggle to achieve long-term stability.

The exchange rate performance also comes at a time when businesses and households are grappling with rising inflation, which stood above 30% in recent reports, further eroding purchasing power. Many stakeholders are calling for deeper structural reforms to diversify Nigeria’s export base and reduce dependence on imports, which exert constant pressure on the local currency.

For now, the Naira’s slight appreciation offers some relief to traders and consumers, though sustained gains will depend heavily on the government’s ability to strengthen the economy, attract foreign investment, and stabilize the energy and manufacturing sectors.