The naira appreciated to N1,355.25/$ at the official foreign exchange market on Friday, marking its strongest level in recent sessions.
This is according to data published on the Central Bank of Nigeria (CBN) website on Saturday.
The gain comes despite a continued decline in Nigeria’s external reserves, raising concerns about the sustainability of the currency’s recovery.
The latest performance reflects a steady appreciation trend recorded throughout the shortened trading week following the Easter holiday.
Trading resumed on Tuesday after the Easter break, with the naira strengthening consistently across the week.
What the data is saying
Data from the CBN shows that the naira recorded steady gains for most trading days, despite an initial weakness on Tuesday after the holiday.
- The currency traded at N1,389/$ on Tuesday, strengthening to N1,369/$ on Wednesday.
- It further appreciated to N1,365/$ on Thursday before closing at N1,355.25/$ on Friday.
- This marks an improvement from the pre-Easter close of N1,382.75/$ recorded on Thursday, April 2, 2026.
- On a year-on-year basis, the naira has strengthened significantly from N1,606/$ recorded after Easter in April 2025.
The data highlights a reversal from last year’s post-Easter depreciation trend, indicating improved short-term currency stability.
Get up to speed
The naira’s recent performance comes against the backdrop of ongoing monetary and foreign exchange reforms by the Central Bank of Nigeria.
- Earlier in February 2026, Nigeria’s external reserves rose to $50.45 billion, the highest level in over a decade.
- The CBN attributed the increase to improved foreign exchange inflows and policy reforms aimed at boosting market liquidity.
- These measures have supported exchange rate stability and improved investor confidence in recent months.
During the week, the dollar had strengthened significantly in March as geopolitical tensions in the Middle East triggered a flight to safety among investors.
- The U.S.-Israel conflict with Iran drove oil prices higher, pressured global equities, and increased inflation concerns.
- Investors shifted to the dollar as a safe-haven asset, boosting its value against major currencies.
- Since the ceasefire agreement earlier in the week, these positions have begun to unwind, leading to a broad-based dollar decline.
More Insights
Despite the naira’s appreciation, Nigeria’s external reserves have continued to decline in April.
- Reserves fell to $48.85 billion as of April 9, 2026, from $49.18 billion at the start of the month.
- The decline follows a period of strong accumulation earlier in the year.
This trend has raised concerns about the sustainability of the naira’s recent gains if reserve depletion continues.
What you should know
The Central Bank of Nigeria (CBN) had earlier projected a positive outlook for the country’s external reserves despite recent declines.
- The apex bank expects reserves to rise to $51.04 billion in 2026 from $45.01 billion in 2025.
Nairametrics reported during the week that the Naira appreciated to N1,365/$ on Thursday, gaining against the U.S. dollar amid a broader global decline in the greenback.
The development comes as the dollar heads for its largest weekly drop since January.
