The Nigerian naira has strengthened beyond the key ₦1,400 psychological threshold, closing at ₦1,396.99 per U.S. dollar on the official foreign exchange market. This marks a notable appreciation and signals renewed momentum for the local currency after months of sustained pressure.
Market data from the Central Bank of Nigeria showed that the naira gained marginally from its previous close, supported by improved foreign exchange liquidity and stronger dollar inflows. The movement below the ₦1,400 mark is significant, as the level had acted as a resistance point for the currency in recent weeks.
Analysts attribute the naira’s performance to ongoing policy reforms in the foreign exchange market, increased participation by exporters and investors, and improved confidence in Nigeria’s macroeconomic outlook. The narrowing gap between the official and parallel market rates has also contributed to stabilising expectations and reducing speculative demand.
In the parallel market, the naira similarly recorded gains, trading around the mid-₦1,450 range, reinforcing positive sentiment across both segments of the FX market. The development is seen as a modest but important step toward currency stability, especially as Nigeria continues efforts to attract foreign capital and strengthen external reserves.
The break below ₦1,400 is widely viewed by market participants as a psychological boost, suggesting that, if current inflows and reforms are sustained, the naira could maintain its recovery trajectory in the near term.
