Nigeria’s naira has broken below the N1,400-to-the-dollar threshold on the official foreign exchange market for the first time in more than a year, signalling a key psychological win for the local currency and renewed confidence among market participants.
Data from the Central Bank of Nigeria (CBN) showed that the Nigerian Foreign Exchange Market (NFEM) rate appreciated to N1,396.99/$1 on Thursday, improving from N1,400.48/$1 recorded the previous day. The move confirms a sustained recovery after months of trading above the N1,400 level.
Intraday trading reflected growing stability, with the naira touching a high of N1,400/$1 and a low of N1,367/$1 before settling around N1,385/$1 at close. This performance capped a week-long appreciation trend, following weaker levels of over N1,420/$1 recorded in late January.
The strengthening was not limited to the official market. At the parallel market, the naira also gained ground, appreciating by 1.06 per cent to N1,454/$, according to Cowry Asset Management Limited. Analysts say this improvement points to better sentiment and narrowing gaps between regulated and informal FX segments.
Commenting on the trend, CFG Advisory CEO Tilewa Adebajo noted that the premium between official and parallel market rates has continued to shrink. He said the spread has fallen to about 6–7 per cent, down sharply from as high as 64 per cent in 2022, suggesting deeper market alignment. Analysts had earlier projected a more predictable trading range this week, driven largely by FX supply and liquidity conditions—expectations that now appear to be playing out.
source: punch