The exchange rate between the Naira and dollar closed relatively stable at N1,372/$1 for the month of May 2026.
This represents a 0.36% drop when compared to the N1,367 at the end of April.
However, the exchange rate has strengthened significantly against the US dollar over the past year, when the May 2026 close of N1,372/$ is compared to N1,585.50/$ recorded at the end of May 2025.
Data from the Central Bank of Nigeria (CBN) showed the currency appreciated by N213.50 year-on-year, representing a 13.5% gain against the dollar.
The performance reflects growing stability in the foreign exchange market amid ongoing monetary reforms, improved FX liquidity, and rising investor confidence.
The latest gain also capped a relatively stable month for the naira, which traded within a narrow range throughout May despite global economic uncertainties and fluctuating demand pressures in the foreign exchange market.
What the data is saying
The naira maintained relative stability throughout May 2026, ending the month stronger than its level a year earlier.
- The naira opened May at N1,367.50/$ and appreciated to N1,358.01/$ on May 7, its strongest level during the month.
- The currency traded between N1,372/$ and N1,375/$ for most of the month before closing at N1,372/$ on May 29.
- Compared with N1,585.50/$ recorded on May 30, 2025, the naira gained approximately N213.50 against the dollar over the one-year period.
- The market was closed on May 27 and May 28 due to the Eid-el-Kabir public holidays.
The relatively narrow trading range suggests a period of consolidation in the foreign exchange market following months of volatility.
More Insights
The naira’s performance in May extended the gains recorded in April, when the currency appreciated from N1,387/$ at the end of March to N1,374/$ at month-end.
- April marked one of the first months since 2024 in which the naira closed stronger than it opened.
- The currency successfully preserved most of those gains throughout May despite external market uncertainties.
- Nigeria’s external reserves also improved during the month, providing additional support for foreign exchange market stability.
- Market participants attribute the improved performance to stronger FX liquidity, sustained reforms, and improved confidence in the foreign exchange market.
The ability of the naira to maintain stability over two consecutive months has strengthened expectations that exchange rate volatility may be moderating.
What you should know
The Central Bank of Nigeria maintained its tight monetary policy stance at its latest Monetary Policy Committee (MPC) meeting in May, a move widely seen as supportive of exchange rate stability.
- The MPC retained the Monetary Policy Rate (MPR) at 26.5%.
- The Cash Reserve Ratio (CRR) for commercial banks was maintained at 45%.
- The CRR for merchant banks remained at 16%.
- The asymmetric corridor around the MPR was retained at +500/-100 basis points.
The CBN said the decision was necessary to consolidate gains in inflation control and foreign exchange market stability.
