The naira strengthened to N1,315 per dollar at Nigeria’s official foreign exchange market on Thursday, recording its strongest performance in about two years.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency appreciated by 0.84 per cent, from N1,326/$ recorded on September 2.
The latest gain puts the naira at its strongest level since April 2024, when the exchange rate last traded around the N1,300/$ mark.
The performance also represents the currency’s strongest showing since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS).
The naira equally recorded gains in the parallel market, where it appreciated to N1,400/$ on Friday, compared with N1,410/$ on Thursday.
The strengthening of the currency across both segments of the foreign exchange market comes amid a significant increase in Nigeria’s external reserves.
According to CBN data, the country’s foreign exchange reserves stood at $54.08 billion as of Thursday, representing their highest level in more than 17 years.
The reserves have risen from $45.56 billion recorded on January 2, translating to an increase of $8.51 billion, or 18.69 per cent, so far this year.
The latest appreciation of the naira, alongside the substantial growth in external reserves, signals an improved foreign exchange position as liquidity conditions in the market continue to strengthen.
