Naira rises to N1,545/$ in parallel market

The naira appreciated against the U.S. dollar on Monday, trading at N1,545/$ in the parallel market, a slight improvement from N1,550/$ recorded over the weekend.

In the Nigerian Foreign Exchange Market (NFEM), the local currency also strengthened, closing at N1,528.65 per dollar, compared to N1,532/$ at the close of trading last Friday.

This marks a N3.35 gain for the naira at the official window.

Data from the Central Bank of Nigeria (CBN) confirmed the appreciation, which signals a modest but encouraging shift in sentiment toward the local currency. As a result of the recovery in both the official and parallel markets, the spread between the two rates narrowed to N16.35, down from N18 recorded over the weekend.

Analysts see the naira’s gains as a result of recent dollar inflows from foreign portfolio investors, improved oil revenue, and the CBN’s sustained interventions aimed at stabilizing the foreign exchange market.

The central bank has implemented a range of policy measures in recent months to boost investor confidence and encourage supply-side support for the naira.

Despite the improvement, currency dealers and financial analysts warn that the market remains vulnerable to external shocks, inflationary pressures, and fluctuations in global oil prices. They emphasize that long-term stability will depend on deeper reforms, diversification of export earnings—especially non-oil revenue—and consistent policy direction.

As of today’s close, the naira continues to reflect gradual momentum toward recovery, though stakeholders remain cautious about the sustainability of the gains in the face of ongoing fiscal and economic challenges.