Encouraged by consistent foreign flows that increased investor confidence and liquidity, the naira kept its gains last week throughout official and parallel foreign exchange markets.
While the parallel rate improved to about ₦1,490 per dollar, the local currency rose by 0.72 percent to close at ₦1,455.17 per dollar in the official market.
Rising oil profits, diaspora remittances, and renewed portfolio inflows have enabled Nigeria’s foreign reserves to expand by 0.83 percent to $42.57 billion, giving the Central Bank of Nigeria (CBN) more room to stabilize the FX market.
While enhanced FX transaction transparency is helping restore market confidence, The News Chronicle learned that the CBN’s recent liquidity infusions and exchange rate manipulations have aided lower speculative pressure. Though hazards from import demand or poor oil inflows could still arise, analysts think the naira could stay steady in the near future.
Confidence spread to the Nigerian stock market as well, where the NGX All-Share Index rose 2.37 percent to close at 146,988.04 points, setting a new 52-week high. Led by industrial and insurance stocks, market capitalization increased by ₦2.16 trillion to reach ₦93.3 trillion. Although trading volume decreased, the number of transactions increased, pointing to greater retail investor engagement.
With industrial products, insurance, oil and gas, and consumer stocks all rising while banking stocks dipped somewhat as investors booked profits, sector performance was mostly positive. Backed by robust corporate results and strategic bargain hunting, analysts forecast a mixed but steady market mood to continue.
The NGX, meanwhile, said it will remove its Alternative Securities Market (ASeM) Board by July 2025 and transfer suitable companies to the Growth Board. The main concern remains whether policymakers can keep the balance between inflows, stability, and long-term investor trust as Nigeria’s financial markets take off.
