The naira appreciated to N1,583/$1 at the official foreign exchange market on Wednesday, strengthening slightly from N1,588.5/$1 recorded on Tuesday, according to data from the Central Bank of Nigeria (CBN).
This marks the third consecutive day of gains for the local currency, which opened the week at N1,597/$1 on Monday.
Intra-day trading data showed the naira reached a high of N1,590/$1 and a low of N1,582.5/$1, with a simple average rate of N1,584.25/$1.
In cross-currency performance, the naira traded at N2,126.23 per British pound and N1,795.07 per euro at the official market.
Parallel market update
At the parallel market, the naira remained stable, closing at N1,625/$1 on Wednesday—the same rate recorded on Tuesday—according to Nairametrics market sources in Lagos. It had closed at N1,627/$1 on Monday.
In terms of other major currencies, the naira exchanged at N2,155.00/£1 on Wednesday, slightly up from N2,145.00/£1 on Tuesday and N2,142.00/£1 on Monday. Against the euro, the naira traded at N1,820/€1 on Wednesday and Monday, while slightly rising to N1,825/€1 on Tuesday.
External reserves climb to $38.53 billion
Nigeria’s external reserves rose to $38.53 billion on Tuesday, up from $38.50 billion the previous day, according to the latest figures from the CBN.
CBN Governor Olayemi Cardoso, speaking after Tuesday’s Monetary Policy Committee (MPC) meeting, noted that recent monetary reforms are starting to yield positive results. He attributed the rise in reserves to increased investor confidence and a return of sidelined market participants, contributing to the naira’s relative stability—currently trading between N1,590/$1 and N1,610/$1 in 2025.
- The CBN data shows that Nigeria’s external reserves began the year on a strong note, surpassing $40 billion in January, with the highest level recorded on January 20 at $40.15 billion. However, by February 18, reserves had fallen to $38.82 billion, reflecting a monthly loss of over $1.3 billion.
- This downward trend continued into March, dropping to $38.35 billion by March 7, $38.57 billion by March 20, and $38.31 billion by March 28—a decline of $260 million in under two weeks. The dip was largely attributed to falling global oil prices, rising external debt obligations, and heightened demand for foreign exchange.
- In April, the reserves stayed below the $38 billion mark, fluctuating between $37.79 billion and $38.08 billion. A rebound began in May, rising to $38.12 billion by May 9, $38.21 billion by May 12, and reaching $38.38 billion by May 16, marking a $260 million increase in just one week.
Governor Cardoso also revealed that net external reserves—a more accurate measure of usable foreign assets—have surged from just over $3 billion to approximately $23 billion. He described this increase as a “quantum leap,” driven by improved transparency in reserve reporting, greater investor confidence, and renewed activity in the FX market.
What you should know
The World Bank, in its recent Nigeria Development Update (NDU) report, titled “Building Momentum for Inclusive Growth,” noted that Nigeria’s macroeconomic outlook is improving, following a series of fiscal and monetary reforms undertaken by the government.
The World Bank notes that this improvement in economic activity was largely underpinned by sustained policy reforms and improved revenue mobilisation.
