Naira Strengthens to ₦1,357/$ as FX Confidence Improves

The naira firmed to ₦1,357 per dollar in the official market, up from ₦1,375.50 at the start of May. This represents a weekly gain of about 1.2%. Experts point to higher demand from local and foreign investors, ongoing interventions by the Central Bank of Nigeria, and increased trading activity. Many traders are now adjusting positions based on daily policy moves rather than expecting further crashes. Analysts warn that heavy election spending ahead of 2027 could weaken the naira in late 2026. Over ₦10.53 trillion in maturing Treasury Bills and open market operations may add excess liquidity if not carefully managed. At the same time, a softer US dollar—driven by slower US growth, easing US-Iran tensions, and hopes of fewer Fed rate hikes—has reduced safe-haven demand. Markets are waiting on new US jobs data and Fed comments for the next directional clues.

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