Naira Gains N10 to Close at N1,348/$ Amid Strongest Reserves Since 2013

SAMUEL MOBOLAJI

The naira strengthened week-on-week in the official foreign exchange market, closing at N1,348 per US dollar on Friday, up N10 from last week’s N1,358 per dollar.

Data from the Central Bank of Nigeria showed that the local currency maintained a largely positive trajectory throughout the week. The naira opened at N1,344 per dollar on Monday, strengthened to N1,337 on Tuesday, slipped slightly to N1,340 on Wednesday, firmed to N1,346 on Thursday, before settling at N1,348 on Friday.

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In the parallel market, the naira also strengthened, trading at N1,361.50 per dollar on Friday, up from N1,374 on Thursday and N1,420 at the same session last week, reflecting narrowing spreads and improved liquidity conditions.

The Central Bank’s latest data shows Nigeria’s external reserves have climbed to $48.5 billion, their highest level since May 14, 2013, when reserves stood at approximately $48.51 billion. Reserves crossed $46 billion in January and moved above $47 billion by February 11, marking key milestones in the apex bank’s stabilisation efforts.

The reserve build-up underpins the naira’s recent gains by strengthening the central bank’s capacity to meet external obligations, buffer against global shocks, and manage capital flow volatility. Analysts note that rising reserves have been a critical factor in improving market confidence and sustaining currency stability.

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The Central Bank of Nigeria projects that external reserves could reach $51 billion by the end of 2026. Achieving this target would reinforce the naira’s stability, reduce exchange rate volatility, and further restore investor confidence in Nigeria’s foreign exchange market.

With the naira recovering steadily in both official and parallel markets and reserves at historic highs, the outlook points to a more resilient currency environment supporting broader economic stability.