Naira strengthens to N1,418 amid weakening U.S. Dollar

The Nigerian naira appreciated to N1,418 per dollar at the official Nigerian Foreign Exchange Market (NAFEM) window on Monday, supported by strong exporter activity and non-bank corporate inflows.

The move comes as the U.S. dollar index (DXY) weakens amid geopolitical tensions and broad market shifts.

Data from the Central Bank of Nigeria (CBN) showed the naira closed at ₦1,418.95/$, reflecting stability in the absence of significant foreign payments pressures.

Analysts note that the dollar’s decline against major currencies has contributed to the local currency’s relative strength.

Foreign portfolio investments remain the leading source of inflows at the official forex window, with the CBN actively supporting supply. Analysts point to rising oil production and price stability as key factors boosting foreign exchange receipts.

According to the Nigerian Upstream Petroleum Regulatory Commission, Nigeria’s crude oil output, including condensates, averaged 1.64 million barrels per day (mbpd) in 2025, a 5.81% increase from 1.55 mbpd in 2024.

Meanwhile, Nigeria’s gross external reserves crossed the $46 billion mark, providing a buffer to support the naira and stabilize foreign exchange markets.
Parallel market movements

In the parallel (black) market, the naira traded at ₦1,481/$, down 0.40% as local demand remained steady despite broader currency volatility.

The dollar’s weakness is influenced by geopolitical risk, including the redeployment of U.S. naval assets to the Middle East, which has reignited speculation about potential military tensions with Iran.

The broad dollar index has slipped below the 98.00 handle, raising concerns about extended periods of USD softness, according to MUFG Research.

Analysts caution that fluctuating global oil prices and domestic production uncertainties could continue to influence the naira’s trajectory, though current fundamentals and strategic interventions by the CBN support near-term stability.