(DDM) – The Nigerian naira has extended its gains against the United States dollar, recording improvements across both the official and parallel foreign exchange markets.
Diaspora Digital Media (DDM) notes that in Abuja’s parallel market on Monday, the naira traded at ₦1,510 per dollar for buying and ₦1,520 for selling.
This shows a steady rise from Friday’s closing rate of ₦1,525 per dollar, reflecting a ₦15.33 appreciation compared to last week’s levels.
At the Nigerian Foreign Exchange Market (NAFEM), the naira also closed stronger at ₦1,487.9, up from ₦1,498 per dollar.
Currency analysts say the renewed strength is a direct outcome of recent reforms by the Central Bank of Nigeria (CBN) aimed at enhancing transparency in FX transactions and reducing the long-standing gap between the official and black-market rates.
The reforms, coupled with tighter monetary controls, have been credited with restoring investor confidence in Nigeria’s currency markets.
Adding to the momentum is the latest inflation report, which revealed a slowdown in the country’s inflation rate.
According to the National Bureau of Statistics (NBS), inflation eased to 20.12 percent in August, down from 21.88 percent in July.
Economists believe this decline has given traders and investors more confidence in the purchasing power of the naira, encouraging stronger participation in the official FX window.
Market watchers note that the CBN’s ongoing interventions, including improved liquidity supply and stricter monitoring of FX allocations, are beginning to yield visible results.
However, some experts caution that sustaining the naira’s recovery will depend on consistency in policy execution and stronger export earnings, particularly from crude oil sales.
Nigeria has historically battled with sharp currency volatility, largely fueled by over-reliance on oil revenues, heavy import demand, and speculative trading in the parallel market.
But with the reforms narrowing the rate disparity, investors see a potential stabilisation of Nigeria’s FX market in the coming months.
Traders in Abuja and Lagos told DDM that dollar demand had slightly reduced compared to earlier weeks, a sign that speculators were pulling back amid the naira’s rebound.
Financial analysts also project that continued government commitment to tackling inflation, expanding non-oil exports, and ensuring transparency in the FX system will be critical in sustaining this positive trajectory.
For ordinary Nigerians, the naira’s gradual recovery raises hopes of easing prices of imported goods, though experts warn that full relief may take time given lingering supply chain costs.
The currency’s resilience, analysts argue, will remain a key benchmark of investor sentiment as the country seeks to rebuild macroeconomic stability.
