Nigeria’s naira has crossed a key psychological threshold, trading below N1,400 to the dollar on the official foreign exchange market for the first time in more than a year, signalling improving sentiment around the currency.
Data from the Central Bank of Nigeria show that the Nigerian Foreign Exchange Market (NFEM) rate strengthened to N1,396.99/$1 on Thursday, from N1,400.48/$1 recorded a day earlier. The move marks a return to sub-N1,400 levels after an extended period of weakness above that line.
During intraday trading, the naira fluctuated between a high of N1,400/$1 and a low of N1,367/$1, before closing stronger at N1,385/$1, capping a week of steady appreciation at the official window.
The latest performance reflects a sustained recovery. Only a week earlier, the NFEM rate had traded above N1,420/$1, weakening to N1,422.07/$1 on January 22 and N1,421.63/$1 on January 23. Since then, the currency has gradually strengthened, easing to N1,418.95/$1 on Monday, N1,401.22/$1 on Tuesday and breaking below the N1,400 mark on Thursday.
Gains were also recorded in the parallel market. According to Cowry Asset Management Limited, the naira appreciated by 1.06 per cent to N1,454/$1, reflecting improving confidence across both the official and informal segments of the FX market.
Market analysts say the narrowing gap between official and parallel rates underscores growing stability. Tilewa Adebajo, chief executive officer of CFG Advisory, noted that the premium between the two markets has compressed significantly.
“Using midpoint quotes, the premium is now around six to seven per cent,” Adebajo said, adding that spreads have fallen sharply from about 64 per cent in 2022 to current levels.
Analysts attribute the naira’s recent gains to improved foreign exchange liquidity and supply conditions, noting that the currency’s movement has remained largely orderly and predictable in recent sessions.
