Naira Appreciates to N1,367/$ in Early May 2026 Trading as FX Market Stability Improves

The Nigerian naira opened the first trading session of May 2026 on a stronger note, appreciating to N1,367.5 per dollar on May 4. This continues the positive momentum recorded in April, when the local currency closed at N1,374 per dollar, according to data from the Central Bank of Nigeria (CBN).

For the first time since 2024, the naira ended April in positive territory, signaling a shift in market sentiment. The currency traded within a relatively tight range during the period, with intraday movements between N1,362 and N1,374.5 per dollar, and an average exchange rate of N1,365.89.

Market analysts attribute the recent stability to improved liquidity and reduced volatility in the foreign exchange market. Although global economic tensions continue to support the strength of the U.S. dollar, Nigeria’s FX market has shown signs of resilience in recent weeks.

Despite the gains, pressure still lingers beneath the surface. Nigeria’s external reserves fell to $48.36 billion by the end of April 2026, down from $49.18 billion at the beginning of the month. However, earlier projections by the CBN suggest reserves could recover to $51 billion by the end of the year, supported by oil earnings and foreign inflows.

Meanwhile, global currency markets remain mixed, with the U.S. dollar strengthening on safe-haven demand, while other major currencies like the euro and British pound trade within narrow ranges. In Nigeria, policymakers continue to focus on reforms aimed at improving FX liquidity and stabilizing long-term market confidence.

source: nairametrics