The Nigerian naira made a surprise comeback on Thursday, appreciating against the United States dollar at the official foreign exchange market and signalling renewed confidence in the currency.
Naira Gains at Official Window
Data from the Central Bank of Nigeria showed that the naira strengthened to ₦1,419.28 per dollar on Thursday, improving from ₦1,420.04 recorded on Wednesday.
This represents a ₦0.76 gain in just 24 hours, marking a modest but psychologically important rebound after the slight dip earlier in the week.
Market watchers say the appreciation reflects improved liquidity conditions and growing confidence tied to Nigeria’s external reserve position.
Black Market Holds Firm
While the official market recorded gains, the parallel (black) market remained unchanged.
Checks with multiple Bureau De Change operators in Wuse Zone 4, Abuja, confirmed that the naira continued to trade at ₦1,490 per dollar, the same rate as the previous day.
The stability suggests that speculative pressure may be easing, even though the gap between the official and parallel markets remains wide.
External Reserves Quietly Rising
One of the biggest drivers behind the naira’s resilience is Nigeria’s growing external reserves.
Figures show that reserves rose to $45.82 billion as of January 14, up from $45.78 billion the previous day.
Though the increase appears small, analysts note that consistent reserve growth boosts market confidence and strengthens the CBN’s capacity to defend the naira when needed.
Why This Matters
Just a day earlier, the naira had slipped slightly against the dollar, raising concerns among traders. This quick turnaround, however, suggests that the currency is finding short-term support amid tighter controls and cautious optimism in the FX market.
If reserve accretion continues and demand pressures ease, analysts believe the naira could maintain relative stability in the near term — though volatility has not entirely disappeared.
Bottom Line
The naira’s bounce-back may be small in numbers, but it sends a strong signal to the market: confidence is slowly returning, and the dollar no longer has a free run.
All eyes are now on whether this momentum can be sustained in the days ahead.
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