The naira strengthened against the euro on Thursday, marking another calm but confident trading session.
According to CBN data, the currency closed at ₦1,606 per euro, improving from ₦1,644/€1 on Wednesday.
Naira Gains On Market Confidence
This shift followed steady demand for the naira, as traders responded to clearer global and domestic signals.
Euro Weakness Creates Opening
At the same time, pressure on the euro created room for the naira to advance.
Eurozone inflation slowed to 1.7%, falling below the European Central Bank’s target.
As a result, investors increased expectations of future rate cuts, which weakened the euro’s appeal.
Meanwhile, economic growth across the Eurozone remained modest.
Forecasts placed expansion at 1.2% in 2026, limiting the euro’s ability to recover strongly.
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Consequently, emerging market currencies, including the naira, found space to regain ground.
Trade And Policy Support Naira
In addition, Nigeria’s external position continued to support the local currency.
Foreign exchange reserves rose to an estimated $46.7 billion, strengthening the CBN’s capacity to manage market demand and limit volatility.
The central bank also reinforced confidence through its monetary stance.
It kept the benchmark interest rate at 27%, after making only one cut in 2025.
By maintaining high yields, the CBN continued to attract foreign portfolio investors seeking returns.
Furthermore, trade flows with Europe added momentum.
Nigeria recorded a $10 billion trade surplus with the EU in 2025, driven mainly by exports of crude oil, gas and cocoa.
Countries such as Germany, France, the Netherlands and Spain remained key destinations.
Although Nigeria has not signed a full trade agreement with the EU, both sides sustained engagement.
They also scheduled a Nigeria–EU ministerial meeting for Abuja in March 2026.
Together, these global pressures and domestic supports allowed the naira to strengthen steadily, rather than surge suddenly.
