The naira, on Thursday, extended its recent gains at the official market, strengthening to N1,385 per dollar.
This is its strongest level since May 2024, according to data from the Central Bank of Nigeria (CBN).
Figures published on the CBN’s Nigerian Foreign Exchange Market (NFEM) platform show that the local currency appreciated further from its previous close, showing improved short-term stability at the official window after weeks of heightened volatility.
The latest performance places the naira at levels last seen in late May 2024, when reform-driven inflows and policy adjustments briefly supported the currency before renewed pressures emerged later in the year.
At the close of trading on Thursday, the naira exchanged at N1,385 per dollar at the NFEM, marking a further appreciation and confirming its strongest official-market showing in over 20 months.
The continued strengthening reflects relatively improved liquidity conditions at the official window, supported by ongoing FX market reforms and tighter monitoring of transactions.
The move also suggests a temporary easing of demand pressure at the NFEM.
Despite the improved performance at the official market, signals from the parallel market remain mixed, highlighting persistent distortions in the broader foreign exchange system.
According to traders, unmet FX demand outside official channels continues to influence pricing in the informal market, underscoring the gap between official-market stability and broader market confidence.
The naira’s recent appreciation is occurring against the backdrop of renewed weakness in the US dollar, which has provided some external support to emerging and frontier market currencies.
The dollar has retreated in recent weeks to its weakest levels since early 2022 as investors reassess the outlook for the US economy amid slowing growth signals and policy uncertainty.
