Nigeria’s naira held broadly stable last week, supported by a hawkish Central Bank of Nigeria (CBN) policy stance and rising crude oil production, as authorities stepped in to smooth brief bouts of dollar demand.
The naira closed at 1,370.19 per dollar on Friday at the official window, little changed from the previous session, trading in a narrow band of 1,369 to 1,373 through the day. It had briefly weakened past 1,390 in early trading before CBN intervention eased pressure, dealers said.
Analysts said the CBN’s continued liquidity-tightening stance is keeping yields on open market operations and fixed-income instruments attractive to foreign investors, sustaining dollar inflows into the market. Rising oil production is also boosting fiscal revenue and reserve confidence, they said.
Nigeria’s crude output rose to about 1.53 million barrels per day in May, from 1.49 million in April, according to OPEC’s June report.
Some analysts cautioned the currency’s stability remains reliant on foreign capital drawn by high interest rates rather than structural economic strength, leaving it vulnerable if global rate conditions or oil prices shift.
