On May 4, 2026, the naira opened stronger at ₦1,367.5/$, extending its April gains.
Central Bank of Nigeria data showed the currency closed April at ₦1,374/$.
It recorded its first April gain since 2024.
Naira Opens May On Stronger Footing
As trading began in May, the naira held steady, and market conditions supported stability.
It traded between ₦1,362/$ and ₦1,374.5/$, and this reduced volatility across the day.
Consequently, the average exchange rate settled at ₦1,365.89/$, and traders saw cautious stability.
Earlier in April, the naira traded around ₦1,376/$, but it later strengthened gradually.
In March, it closed weaker at ₦1,387/$, and this showed earlier downward pressure.
However, the naira reversed that trend in April as sentiment improved and liquidity increased.
In addition, gains continued into early May, and this reinforced a steadier short-term outlook.
External Reserves Face Renewed Pressure
Meanwhile, Nigeria’s external reserves fell to $48.36 billion by April 30, 2026.
This figure dropped from $49.18 billion at the start of April, and this showed FX pressure.
Earlier, CBN Governor Olayemi Cardoso reported that reserves rose to $50.45 billion in February.
He linked this rise to stronger oil earnings and increased foreign inflows into Nigeria.
Furthermore, he explained that reforms aim to improve liquidity and restore investor confidence.
Read Also: Naira Ends April In Positive Territory For First Time In NAFEXE Era
However, reserves fell by $731 million in early April, and this signalled continued pressure.
Despite this, the CBN projects reserves could reach $51 billion by end of 2026.
Global Dollar Strength Shapes Markets
Globally, currency markets stayed volatile, and the US dollar strengthened on safe-haven demand.
At the same time, geopolitical tensions in the Middle East pushed investors towards the dollar.
As a result, the dollar index remained firm at 98.452 after recent gains.
Elsewhere, the euro traded at $1.1693, while the British pound stood at $1.353.
Similarly, the Japanese yen stayed steady as markets expected possible intervention.
Meanwhile, the Australian dollar hovered near $0.7168 ahead of a central bank policy decision.
Overall, the naira shows cautious stability, reflecting reduced volatility rather than strong recovery.
