Naira gains 5.06% on dollar supply surge

The naira, on Wednesday, recorded 5.06 percent gain in the official foreign exchange (FX) market following an increase in dollar supply to $221.24 million in one trading day.

After trading, the naira appreciated by 5.06 percent as the dollar was quoted at N1,558.75 compared to N1,637.59 seen on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Securities Exchange Limited.

The dollar supplied by willing buyers and willing sellers increased by 54.55 percent to $221.24 million on Wednesday from N143.15 million recorded on Tuesday at NAFEM.

According to the market summary, the intraday high printed at N1,659.50 per dollar compared to N1,655/$ the previous day. The intraday low closed at N1,540 on the same day as against N1,499 closed on Tuesday.

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The local currency steadied at N1,660 per dollar at the parallel market, commonly referred to as the black market.

Last week, the exchange rate gained 0.33 percent to close at N1,593.32/$1 at the NAFEM window, according to a report by Coronation Asset Management. This moderated its year-to-date depreciation to 43.07 percent from 43.25 percent the previous week. Conversely, the Naira declined in the parallel market by 1.80 percent, ending the week at N1,670.00/US$1.There is now a 4.8 percent difference between the two rates.

During the week, the Central Bank of Nigeria (CBN) sold US dollars to Bureau de Change (BDC) operators at a rate of N1,580/$, increasing market liquidity. The goal was to meet the needs of eligible invisible transactions, which included school fees, medical costs, and allowances for personal and business trips.

Total inflows through the NAFEM window increased to $477.00m (from $403.00m the previous week), largely supported by non-bank corporates. Total outflows also significantly increased to $529.30m (from $370.90m the previous week) due to outflows from non-bank corporates and the exporters/importers window. The CBN published a slight gain of 0.09 percent, or $31.35m in its gross foreign exchange reserves, closing the week at US$36.34 billion.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.