Nigeria’s currency recorded a rare monthly gain in April, with the naira strengthening against the dollar for the first time in years during the post-reform FX era.
Data from the Central Bank of Nigeria shows the currency closed the month at N1,374 per dollar, improving from N1,387 recorded in March.
The performance indicates a change in market sentiment following months of instability, with the naira trading within a narrower range and exhibiting fewer fluctuations than earlier in the year. Analysts say that better liquidity and more balanced demand contributed to the recovery.
Stronger foreign currency inflows, including oil-related revenue and diaspora remittances, helped to relieve strain on the currency; lowered speculative demand also contributed to the stability seen across April, as noted by the News Chronicle.
The naira traded at roughly N1,341 at its peak this month, showing a gradual but consistent rise in value caused by growing trust in the foreign exchange market. This is a significant change from March, when the currency briefly dropped to N1,425 before rebounding.
Therefore, the naira has increased year-over-year relative to its April 2025 levels, strengthening indications of a more stable currency environment. However, given recent indications of decreasing foreign reserves, questions regarding sustainability linger.
Market experts believe the next few months will be crucial in determining whether the gains can be sustained, especially given that monetary policy and liquidity factors continue to influence currency fluctuations.
