June 23, 2026 – Abuja, Nigeria
The naira strengthened marginally across foreign exchange market segments on Monday as Nigeria's external reserves exceeded the Central Bank of Nigeria's (CBN) year-end target of $51.04 billion.
The naira appreciated by N1.35 in the NFEM, with the dollar quoted at N1,369.11 on Monday compared to N1,370.46 on Friday. In the parallel market, the naira gained N5 to close at N1,395 per dollar.
The stability reflects improved liquidity and the impact of ongoing reforms aimed at enhancing transparency in forex trading. The CBN's efforts to clear the backlog of forex demand and unify exchange rates have contributed to the naira's stability.
Nigeria's external reserves rose to $51.06 billion as of June 19, 2026, representing a 32.62 percent increase compared to $38.50 billion recorded in the corresponding period of 2025.
The surge in reserves is attributed to higher crude oil prices, increased foreign portfolio investment, and the CBN's successful forex reforms, including the unification of exchange rates and clearance of the backlog of forex demand.
The Central Bank of Nigeria has been implementing a series of reforms aimed at stabilising the naira and improving the foreign exchange market. These include:
- Unification of exchange rates
- Clearance of the backlog of forex demand
- Implementation of the Electronic Foreign Exchange Matching System (EFEMS)
- Increased transparency in the allocation of forex
The strengthening of the naira and the surge in external reserves are positive indicators for Nigeria's economy. However, economists caution that the gains may be fragile. Global oil prices, US interest rates, and political uncertainty ahead of the 2027 elections could reverse the gains.
Economists have called on the government to sustain the reforms and address structural challenges such as insecurity and infrastructure deficits to ensure long-term economic stability.
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