Naira Posts Marginal Gain Despite Slide In External Reserves

According to Ireporter Online, the Nigerian naira ended April 2026 on a slightly stronger footing against the United States dollar, marking its first April appreciation since the introduction of the Nigerian Autonomous Foreign Exchange Market. Central Bank of Nigeria data indicated that the currency rose from about N1,387 per dollar at the end of March to approximately N1,374 per dollar in the official market by the close of April, reflecting a rare positive monthly performance after successive April declines in previous years.

Further market figures showed that the naira appreciated by about 0.27 per cent in the Nigerian Foreign Exchange Market, closing at N1,374.94 per dollar on April 30 compared to N1,378.70 at the beginning of the month. The parallel market also recorded gains, with the currency strengthening by N10 to close at N1,400 per dollar from N1,410 earlier in the month. The improvement was largely driven by increased foreign exchange liquidity, with total FX turnover rising to about $10bn in April, alongside a 28.61 per cent increase in trading activity to 7,889 deals compared to March.

Market stability was also reflected in reduced volatility, as the naira traded within a relatively tight band of N1,340 to N1,389 per dollar during the month, briefly strengthening to its highest level around N1,341.01. Analysts attributed the improved performance to stronger FX inflows, increased diaspora remittances, oil-related earnings, and reduced speculative pressure, supported by ongoing monetary tightening and liquidity reforms by the Central Bank of Nigeria. Despite these gains, external reserves declined by about $810m to $48.37bn during the period. However, CBN Governor Olayemi Cardoso dismissed concerns over the dip, describing it as a normal outcome of a more liberalised exchange rate system, while maintaining that Nigeria’s reserves remain strong enough to cover approximately 13 months of imports. He also noted that diaspora remittances are averaging $600m monthly, with efforts underway to boost inflows toward $1bn monthly through improved banking channels and reduced bottlenecks.