Naira Records Strongest Gain Since December 2024 as Dollar Inflows Boost Liquidity
Koko Maxwella 
ABUJA, Nigeria – The naira posted its strongest weekly gain since December 2024, appreciating across both the official and parallel foreign exchange markets on the back of improved liquidity and stronger foreign inflows.
Data from the Central Bank of Nigeria (CBN) showed that the local currency strengthened by 0.72 per cent (₦10.5) to close at ₦1,455.17/$ at the official market last week. At the parallel market, it appreciated by 0.88 per cent to settle at ₦1,475/$.
Market analysts attributed the rebound to sustained dollar inflows from foreign portfolio investors (FPIs) meeting fixed-income obligations, alongside higher proceeds from oil exports and diaspora remittances.
The forex market began the week under pressure due to the exit of some FPIs, but midweek inflows reversed the trend, improving overall liquidity.
Financial analysts at Cowry Asset Management Limited said the naira’s recovery was supported by “steady FX inflows and CBN interventions, which helped ease demand pressures.”
“We expect the naira to stay stable in the near term, supported by steady inflows and active CBN intervention,” the firm noted. “However, rising import demand or weaker inflows could slow further gains.”
Nigeria’s external reserves rose to $42.57 billion, buoyed by oil receipts, portfolio investments, and remittances. Analysts say continued inflows and proactive monetary management could sustain the naira’s stability, although global oil market volatility remains a key risk.
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