Naira Gains to N1,374.92 as GDP Growth Hits 3.89%, External Reserves Rise to $48.98 Billion
By Aboki Forex —
Nigeria’s currency recorded fresh gains against the United States dollar in both the official and parallel foreign exchange markets. Improving economic indicators and stronger external reserves boosted investor confidence.
The latest development comes after Nigeria posted stronger than expected economic growth in the first quarter of 2026. Easing tensions in the Middle East also triggered a decline in global crude oil prices and weakened demand for the dollar.
Fresh data from the National Bureau of Statistics showed that Nigeria’s economy expanded by 3.89% year on year in the first quarter of 2026. This is a notable improvement from the 3.13% growth recorded during the same period in 2025.
The stronger economic performance has fueled optimism among investors and market participants. This has led to increased confidence in the naira.
Analysts believe expectations surrounding the Central Bank of Nigeria’s upcoming Open Market Operations bills auction are attracting attention from foreign portfolio investors. These investors are expected to bring additional foreign exchange inflows into the country.
Official Market Gains
According to the CBN’s latest foreign exchange update, the naira appreciated by 0.04% at the Nigerian Foreign Exchange Market window. It closed at ₦1,374.92 per dollar.
Trading at the official market remained relatively stable. The exchange rate fluctuated between ₦1,373 and ₦1,377 per dollar throughout the session.
Foreign exchange interbank turnover declined to $55.79 million across 71 deals. This compares with $62.34 million recorded at the close of trading on Friday.
Market analysts say expectations of improved dollar liquidity and possible OMO bill sales to offshore investors could further strengthen demand for the local currency in the coming days.
Parallel Market Gains
The naira also posted gains in the parallel market, commonly known as the black market. Checks across major trading hubs showed the local currency appreciated by ₦5 to close at ₦1,390 per dollar.
The appreciation reflects broad based demand for the naira across both official and informal foreign exchange segments. As a result, the gap between the official and parallel market rates narrowed significantly to ₦15.08 per dollar. This is down from ₦18.54 recorded at the end of last week.
External Reserves Support
Another factor supporting the naira is the steady rise in Nigeria’s external reserves. Latest data showed the country’s foreign exchange reserves increased to $48.98 billion from $48.89 billion.
The increase was driven largely by inflows from crude oil exports and other foreign currency earnings. The improvement in reserves strengthens the CBN’s ability to support the foreign exchange market. It also provides reassurance to investors about Nigeria’s external position.
Global Oil Prices Decline
According to a report by MarketForces Africa, global crude oil prices came under intense pressure on Monday. Reports suggested progress in negotiations between the United States and Iran.
West Texas Intermediate crude futures plunged by about 8%, slipping below the $90 per barrel mark. Brent crude fell roughly 7% toward $93 per barrel.
The sharp decline was driven by expectations that an agreement between the two countries could ease disruptions to global energy supplies. Investors are closely monitoring developments surrounding the Strait of Hormuz. This critical shipping route is responsible for transporting nearly one fifth of the world’s oil and liquefied natural gas exports.
Reports indicating that the waterway could fully reopen within weeks have raised hopes of improved global supply conditions. This has helped push oil prices lower and ease concerns over prolonged geopolitical disruptions.
For Nigeria, stronger economic growth, rising reserves, and renewed investor confidence are combining to provide fresh support for the naira. This offers a positive signal for businesses and consumers watching exchange rate movements closely.