On Thursday, the Naira strengthened to N1,315 against the US dollar in the official segment of the foreign exchange (FX) market, marking one of its most significant recoveries in recent years.
Data from the Nigerian Foreign Exchange Market (NFEM) reveals a gain of 0.84% from the N1,326 per dollar rate recorded on September 2.
According to the latest figures, which align with reporting from the Central Bank of Nigeria (CBN), the current exchange rate of N1,315.67 per dollar indicates the return of the Naira to the N1,300 threshold, previously last seen in April 2024.
This recent appreciation signifies the currency’s strongest performance since the implementation of the Electronic Foreign Exchange Matching System (EFEMS).
In the parallel market, the Naira also experienced gains, rising to N1,400 per dollar on Friday from N1,410 on Thursday, highlighting its upward trajectory across both market segments.
These positive movements occur concurrently with Nigeria’s external reserves, which reached an impressive $54.08 billion as of Thursday—its highest level in over 17 years.
This $8.51 billion increase, or 18.69% year-to-date, further bolsters the country’s external financial position.
The Naira’s recent gains are drawing considerable attention, as strengthened market conditions and enhanced foreign-exchange liquidity contribute to its performance. This backdrop of improved reserves enhances Nigeria’s ability to meet foreign-exchange obligations and intervene in the market as deemed necessary.
Returning the Naira to the N1,300 range reflects a remarkable shift from the significant depreciation following the foreign-exchange reforms introduced in 2023. Such sustained appreciation is being closely monitored by businesses, investors, and consumers, given its implications for the costs of imports and dollar-linked transactions.
The latest data indicates a continued strengthening of the Naira in the official market, even as discrepancies persist between official and parallel-market rates.