The Nigerian foreign exchange market opened stronger, and the naira gained ground against the British pound sterling.
The Central Bank of Nigeria (CBN) reported that traders exchanged the pound at ₦1,840 per £1.
Naira Strengthens Against Pound Amid UK Uncertainty
This movement signals a mild recovery, as the naira bounced back from weaker April trading sessions.
By early May, the naira showed resilience, and improved liquidity supported overall market stability.
Meanwhile, political uncertainty in the United Kingdom weakened the British pound.
Tensions within the Labour Party increased pressure on Prime Minister Keir Starmer’s government.
As a result, these developments dragged the pound to monthly lows and strengthened the naira’s position.
Naira Trading Range And Market Levels
However, the naira still trades within a range of ₦1,825 to ₦1,950 per pound.
In addition, market sentiment reacts quickly to UK political news and CBN liquidity decisions.
Traders now watch support levels between ₦1,750 and ₦1,800, especially if dollar supply rises.
Moreover, stronger CBN intervention could push the naira toward these lower levels again.
On the upside, resistance holds firm between ₦1,880 and ₦1,900.
Read Also: Nigeria Misses Tax Revenue Goal as Collections Reach ₦7.44Tn
If the market breaks above ₦1,900, the rate could quickly move toward ₦2,000 in parallel markets.
Oil Flows, Inflation And Currency Pressure
Furthermore, oil revenue and foreign investment inflows drive naira performance.
When official liquidity tightens, pressure shifts to the parallel market and increases demand for foreign currency.
Consequently, this shift raises volatility across trading platforms.
Inflation in Nigeria continues to erode the naira’s real purchasing power over time.
Meanwhile, the British pound trades in a narrow band near 1.3430 during London sessions.
Bank of England policy signals remain mixed, and this creates uncertainty for investors.
Finally, global markets stay cautious due to geopolitical tensions and ongoing US–Iran negotiations.