Nigeria’s currency closed the week on a stronger note on Friday, posting modest gains against the US dollar in the official foreign exchange market, according to data released by the Central Bank of Nigeria.
The naira appreciated to 1,366.23 per dollar at the close of trading on Friday, strengthening by 5.27 naira from the previous day’s rate of 1,371.50 per dollar, figures published on the central bank’s website showed.
The gain represents an increase of about 0.3 percent, extending a trend of gradual appreciation recorded during the week.
Market participants attributed the improvement to sustained activity in the foreign exchange market and steady supply of dollars to the official trading window.
Nigeria’s currency had opened the week at 1,405.62 per dollar on Monday before recording successive gains over the following trading sessions.
By Tuesday, the naira had strengthened slightly to close at 1,401.40 per dollar. The currency extended the rally on Wednesday, trading at 1,376.19 against the US currency, before maintaining the upward trajectory toward the end of the week.
Analysts say the steady recovery suggests growing stability in Nigeria’s official foreign exchange market after months of volatility.
“The gradual appreciation indicates improving liquidity and increased confidence in the official market,” one Lagos-based currency analyst said.
Africa’s largest economy has faced persistent pressure on its currency in recent years due to foreign exchange shortages, declining oil revenues and strong demand for dollars for imports and international payments.
Authorities have implemented a series of reforms aimed at improving dollar supply and stabilising the naira, including adjustments to exchange rate management and tighter oversight of banking and foreign exchange operations.
The central bank has also moved to strengthen financial regulations and reduce speculative demand for foreign currency in the market.
Earlier this week, the regulator introduced new compliance measures affecting credit access for major borrowers with non-performing loans, part of broader efforts to improve financial discipline in the banking sector.
The naira’s performance remains closely watched by investors and businesses, as exchange rate movements directly affect import costs, inflation and overall economic stability in the oil-dependent nation.
Currency volatility has been a key concern for manufacturers and traders who rely heavily on imported goods and raw materials.
However, analysts caution that while recent gains are encouraging, sustained stability will depend on continued foreign exchange inflows and consistent policy implementation.
Nigeria relies heavily on oil exports for foreign currency earnings, making the naira sensitive to fluctuations in global energy prices and production levels.
Market watchers say stronger oil revenues, improved remittance flows and continued reforms in the foreign exchange market could support the currency in the coming months.
For now, the latest appreciation signals a cautiously positive outlook for the naira as authorities continue efforts to stabilise Africa’s largest economy and restore confidence in the country’s financial markets.
