Nigeria’s local currency, the naira, recorded a modest gain on Wednesday, appreciating to ₦1,490 per US dollar in the parallel market, up from ₦1,495/$ on Tuesday.
The improvement, though slight, reflects a continuing trend of gradual recovery amid government efforts to stabilize the foreign exchange market.
Similarly, in the Nigerian Foreign Exchange Market (NFEM), the naira appreciated to ₦1,469 per dollar, compared to ₦1,472/$ the previous day.
Data released by the Central Bank of Nigeria (CBN) confirmed the ₦3 appreciation, underscoring ongoing policy adjustments aimed at boosting market confidence and reducing volatility.
As a result, the exchange rate margin between the parallel market and the NFEM narrowed further—now standing at ₦21 per dollar, down from ₦23 on Tuesday.
Analysts note that this narrowing gap signals improved market alignment and may indicate a gradual return of stability in the nation’s foreign exchange system.
Experts attribute the naira’s recent resilience to multiple factors, including increased dollar inflows from remittances, higher crude oil earnings, and tighter monetary interventions by the apex bank.
Some traders also reported improved liquidity conditions in the open market, suggesting that speculative pressure on the currency may be easing.
Market watchers, however, urge cautious optimism. “While the naira’s appreciation is encouraging, sustained stability will depend on consistent policy implementation and investor confidence,” a Lagos-based financial analyst said.
The federal government and the CBN continue to emphasize the importance of exchange rate convergence as part of broader economic reforms aimed at restoring macroeconomic stability and attracting foreign direct investment (FDI).
With inflationary pressures still high and import costs impacting local prices, stakeholders remain hopeful that a stronger naira will eventually translate to lower commodity prices and improved consumer purchasing power in the coming months.