Naira Gains Slightly as FX Liquidity Hits $10bn in April, Trade Activity Surges

The Nigerian naira closed April 2026 on a slightly stronger note, supported by improved liquidity in the country’s foreign exchange (FX) market, which reached $10 billion during the month. Fresh data from the Central Bank of Nigeria showed a modest increase from the $9.92 billion recorded in March, signaling gradual stability in FX supply.

Trading activity saw a notable boost, reflecting growing market participation. Total deals rose sharply by 28.61 percent to 7,889 transactions in April, up from 6,134 in March. The Nigerian Foreign Exchange Market (NFEM) accounted for the majority of activity, recording 5,795 deals worth $8.14 billion, although the total value dipped slightly compared to the previous month.

The interbank segment also posted strong performance, with deals increasing by nearly 30 percent to 2,094 transactions. Turnover in this segment climbed to $1.86 billion, highlighting improved confidence among banks and institutional players. Analysts say this broad-based increase in trading volumes suggests the FX market is becoming more active and liquid.

At the close of trading on April 30, the naira appreciated marginally at the official market, gaining N3.76 to settle at N1,374.94 per dollar. The currency also strengthened in the parallel market, rising by N10 to close at N1,400 per dollar, narrowing the gap between official and black-market rates.

Despite the improved liquidity, Nigeria’s external reserves declined by $810 million to $48.37 billion during the period. However, CBN Governor Olayemi Cardoso described the drop as part of normal market dynamics in a liberalised FX system, noting that reserves remain strong enough to cover about 13 months of imports. He added that ongoing reforms, including efforts to boost diaspora remittances, are expected to further support liquidity and stabilize the naira in the coming months.