The naira recorded a slow but steady recovery last week and closed at ₦1,391/$ in the official foreign exchange market on Friday.
Improved liquidity conditions and rising external reserves supported the week-on-week gain.
Liquidity And Reserves Lift Anaira
According to data from the Central Bank of Nigeria (CBN), trading conditions varied during the week, but the overall trend favoured the local currency.
After pressure dominated the previous week, the naira regained strength as demand and supply conditions in the FX market improved.
Official Market Shows Steady Gains
At the start of the week, the currency opened at ₦1,416.5/$ on Monday.
It then strengthened to ₦1,409.5/$ on Tuesday and ₦1,394/$ on Wednesday, reflecting easing pressure.
Although the naira slipped slightly to ₦1,391/$ on Friday from ₦1,385/$ on Thursday, it still posted a clear week-on-week gain from ₦1,421.9/$.
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In addition, CBN figures show that the naira traded within a narrow range of ₦1,381/$ to ₦1,392/$ on Friday.
The average rate stood at ₦1,387.12/$, which signalled improving price stability in the official market.
Parallel Market Gap Narrows
Beyond the official window, the parallel market also showed improvement.
The naira closed at ₦1,453/$ on Friday, strengthening from ₦1,490/$ on Thursday.
Notably, research data show that the gap between official and street rates narrowed sharply to ₦62 from ₦105 a day earlier.
As a result, the spread eased from its widest level since early February 2025.
Overall, the narrowing gap points to lower volatility and reduced speculative pressure on the currency.
At the same time, rising external reserves continued to support the naira.
Nigeria’s reserves climbed to $46.18 billion during the week, crossing the $46 billion mark for the first time in nearly eight years.
Looking ahead, the CBN expects reserves to keep rising and forecasts $51.04 billion in 2026, up from an estimated $45.01 billion in 2025.
The bank added that ongoing FX reforms will improve transparency, narrow rate gaps and support medium-term market stability.
