By Atoyebi Nike
The Nigerian naira gained further ground in the parallel market on Monday, trading at N1,527/$1, its strongest level in more than a month. This marked an improvement from Friday’s closing rate of N1,530.96/$1.
Market records show a steady appreciation trend last week: the naira closed at N1,539/$1 on September 1, held the same level on September 2, eased slightly to N1,538/$1 on September 3, then strengthened to N1,535/$1 on September 4, before settling at N1,530.96/$1 on September 5.
In the official window, Central Bank of Nigeria (CBN) data revealed the naira appreciated to N1,511.5/$1 on September 4, one of its best levels in recent weeks, narrowing the gap with the parallel market.
Meanwhile, Nigeria’s foreign reserves rose by 0.09% to $41.5 billion as of September 3, according to CBN data. Analysts say stable reserves, slowing inflation, and relative currency stability are boosting investor confidence despite fiscal pressures and high debt obligations.
The CBN maintained that recent monetary policy actions were yielding results, citing improved capital inflows, stronger crude oil output, rising non-oil exports, and lower imports. However, it warned that upcoming 2027 electioneering activities could drive up dollar demand.
The apex bank now projects the naira will close 2025 at N1,585.5/$1, a 3.1% depreciation but stronger than its earlier forecast of N1,697.5/$1.
Economist Dr. Paul Alaje cautioned that reckless handling of foreign exchange during political campaigns could undermine the fragile gains in economic stability.
