Naira strengthens to N1,561.76
The naira appreciated by 4.49 per cent against the U.S. dollar, closing at N1,561.76 in the official Investor and Exporter (I&E) window, reflecting improved performance in Nigeria’s foreign exchange market.
This gain coincided with steady global oil prices above $77 per barrel and a significant rise in market turnover, which surged to $253.68 million—double the previous day’s volume.
Throughout the trading session, the naira fluctuated, reaching a high of N1,650.00 and a low of N1,540.00 before settling at its final rate of N1,561.76.
In the parallel market, the naira traded between N1,618.72 and N1,620.09, eventually closing at N1,621.03 per dollar.
Experts believe the rise in turnover is a positive signal for market liquidity.
According to economic analyst Dr. Olufemi Adebayo, “The increased market activity suggests heightened confidence in the I&E window, which could help stabilize the currency in the short term.”
He added that the naira’s appreciation also reflects a slight easing of pressures on Nigeria’s foreign exchange reserves due to global oil price stability.
Despite this temporary gain, the naira has faced a challenging year. Year-to-date, it has depreciated over 70 per cent, starting at N907.11/USD in January and crossing the N1,500/USD mark by October.
The currency hit a record low in February at N1,616.53, before showing brief recovery in March when positive market sentiment drove the exchange rate down to N1,303.
This rebound, however, was short-lived, as the naira weakened again, reaching N1,668.97 by the end of September.
Financial analyst, Bayo Adeleke, noted, “While the current appreciation is a welcome relief, the broader issue of currency instability requires more structural reforms to ensure long-term sustainability.”
He emphasized that the volatility in exchange rates has been driven by high demand for the dollar, Nigeria’s ongoing inflation challenges, and weak export diversification.
Another key factor influencing the naira’s future trajectory is the increased reliance on local sourcing of jet fuel from the Dangote Refinery.
According to aviation expert, Musa Usman, “This move should reduce airlines’ exposure to global crude price volatility, lowering their operational costs and potentially boosting investor confidence in Nigeria’s markets.”
Analysts believe that such strategic shifts could attract foreign investment and bolster the naira’s value over time.
However, they caution that without sustained reforms to Nigeria’s foreign exchange policies and economic diversification, the currency could remain vulnerable to external shocks.
