Nigeria’s currency, the naira, regained ground against the United States dollar on Friday, signaling renewed confidence in the foreign exchange market after a period of volatility. Both official exchange rate data and independent market reports show the naira appreciated modestly, suggesting increased liquidity and calmer trading conditions.
According to recent figures from the Nigerian Foreign Exchange Market (NFEM), the naira closed stronger against the dollar at the end of the week than it did earlier in the session. This positive movement comes after a slight weakening earlier in January before the gains resumed.
At the official window, the local currency ended trading around ₦1,417–₦1,422 to the dollar, reflecting a modest but meaningful appreciation from recent levels. This improvement was supported by reported increases in foreign exchange supply from exporters and corporate inflows, which helped ease demand pressure for dollars.
Meanwhile, the parallel market — often tracked as a measure of informal demand and supply — showed continued movement but at a narrower premium compared with official rates. Black market dealers reported rates in the range of roughly ₦1,485–₦1,495 per dollar, indicating some stability outside regulated trading windows as well.
Economists and forex analysts say the renewed strength of the naira reflects a combination of factors, including improved foreign currency inflows and close management by regulators to ensure supply meets demand. The recent uptick also follows reports that Nigeria’s foreign reserves have remained supported, giving policymakers more room to defend the currency.
Although volatility remains a feature of Nigeria’s exchange rate environment, this week’s performance suggests the naira may be entering a phase of consolidation after weeks of fluctuation. For everyday Nigerians and businesses reliant on dollar transactions, even small gains can ease pressure on imported goods prices and cost bases.
Market watchers will continue to monitor global oil prices, remittance flows, and Central Bank actions, as these remain key determinants of currency direction in the near term.
