The Nigerian naira continued its upward trajectory on the official Nigerian Foreign Exchange Market (NAFEM), closing at N1,518 to the US dollar on Monday, marking its strongest level since March and a significant psychological break below the N1,520/$ resistance level.
According to data released by the Central Bank of Nigeria (CBN), the naira’s latest performance reflects renewed optimism in Nigeria’s foreign exchange market, driven by robust CBN interventions, improved dollar liquidity, and growing foreign investor interest.
The bullish trend follows a series of targeted measures by the CBN, including a $50 million direct FX sale to the market last week and a successful Open Market Operations (OMO) auction, which attracted foreign portfolio inflows.
Analysts credit the central bank’s increased presence in the market for stabilizing volatility and boosting investor confidence.
“The coordinated FX interventions and improved oil receipts have helped restore calm and confidence in the market,” a financial analyst at FSDH Merchant Bank noted.
In a major development for consumers, top Nigerian banks — including United Bank for Africa (UBA), FirstBank, Guaranty Trust Bank (GTBank), and Wema Bank — have lifted the three-year restriction on the use of naira debit cards for international transactions, citing improved FX liquidity conditions.
The restriction, initially imposed in response to dwindling dollar reserves, had forced customers to rely on dollar-funded domiciliary accounts for global payments.
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With Monday’s announcement, naira debit cardholders can now make international transactions once again, a move widely seen as a vote of confidence in the FX market’s stability.
The positive sentiment was further supported by fresh data from the Organization of the Petroleum Exporting Countries (OPEC), showing that Nigeria’s average daily crude oil production rose to 1.547 million barrels per day (bpd) in June, the highest level since January. This represents a 3.58% increase from May’s figure of 1.453 million bpd, signaling improved output capacity and boosting foreign earnings.
Meanwhile, global currency markets are reacting to economic developments in the United States.
The US dollar strengthened across major currencies following Wednesday’s release of the latest inflation data, which suggested that tariffs imposed by President Donald Trump are beginning to push up the prices of imported goods such as electronics, coffee, and home furnishings.
This drove Treasury yields and the dollar higher, putting pressure on the Japanese yen, which fell to 149 per dollar, its weakest point in four months. Similarly, the euro and British pound hovered near three-week lows as traders reassessed expectations for future interest rate cuts by the US Federal Reserve.
Market observers are also closely watching political developments in the US, where tensions between Trump and Fed Chairman Jerome Powell have intensified.
The President has repeatedly criticized Powell’s leadership, with new controversy arising over a $2.5 billion cost overrun on the Federal Reserve’s headquarters renovation.
Trump hinted that the scandal could justify Powell’s removal, fueling speculation that a more dovish successor could be appointed soon.
Back home, market analysts remain cautiously optimistic about the naira’s short- to medium-term outlook. With continued CBN support, increased oil exports, and restored card functionality, the FX environment appears increasingly favorable for the naira.
“There’s a clear signal that the FX market is gradually returning to normalcy,” said one market economist. “If current trends continue, the naira could test the N1,500/$ mark in the coming weeks.”
The resurgence of confidence — from investors to everyday consumers — marks a notable shift in Nigeria’s post-reform economic narrative, positioning the naira for a more stable second half of 2025.