Naira Strengthens to N1506 as Foreign Reserves Hit $41.5bn
The Nigerian local currency, the naira, appreciated to N1,506 per dollar at the official window as the nation’s foreign reserves reached $41.500 billion.
According to FX update released by the Central Bank of Nigeria (CBN) spot rate settled at N1506.8433 per dollar at the official window on Monday in the absence of significant FX demand pressure.
The exchange rate appreciated from N1,514.8671 last week due to sufficient US dollar liquidity in the currency market. Analysts projected that the naira will remain relatively stronger in the local currency amidst broader pressures on U.S dollar index in the global space.
Last week, the Naira appreciated by N16.70 to close at N1,514.87/US$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM). In the parallel market, the exchange rate remained steady at N1,540.00/US$1.
Total FX inflows settled at US$567.2 million, lower than US$706.7 million recorded in prior week. Foreign Portfolio Investment (FPIs) led with the highest inflows contributing US$184.1 million (32.5%) to the overall inflows.
According to Coronation Merchant Bank research unit, the CBN intervened in the market accounting for US$173.1mn (30.5%).
Meanwhile, inflows from Exporters and Non-bank Corporates contributed 16.6% and 16.2%, respectively, while others accounted for 4.3%.
Gross external reserves climbed to $41.499 billion over sustained inflows across foreign sources including hydrocarbon revenue in spite of price fluctuations in the global commodity market.
Brent crude ended the week down 3.85% last week, closing at US$65.5/bbl compared to US$68.12/bbl in the previous week. This brings the year to date decline to 12.25%, with the 2025 average price at US$69.98/bbl, about 12.37% lower than the 2024 average.
Oil prices had strengthened earlier in the week on supply concerns linked to potential new U.S. sanctions on Iranian shipments and steady Asian buying.
However, the rally lost steam from midweek as a softer U.S. jobs report raised fears that an economic slowdown could dampen oil demand.
This was compounded by an unexpected build in U.S. crude inventories, which signalled weaker near-term consumption, while renewed speculation of additional OPEC+ supply into the market further weighed on sentiment. Together, these factors pushed Brent into a steady decline into the end of the week.
Looking ahead, analyst anticipate crude prices to remain volatile, with market direction hinging on the balance between demand signals and producer supply decisions. In the near term, U.S. inventory trends, economic data releases, and OPEC+ guidance will be closely watched, with downside risks prevailing unless a stronger demand catalyst emerges CBN to Open Treasury Bills Worth N480bln for Subscription