Naira dips to ₦1,358.75 despite foreign reserves nearing $50 billion

Nigeria’s currency weakened slightly against the United States dollar on Thursday, June 5, 2026, even as the country’s foreign reserves climbed close to their highest level in nearly two decades. The naira depreciated by 0.11 per cent at the Nigeria Foreign Exchange Market (NFEM), closing at ₦1,358.75 per dollar compared to ₦1,357.27 recorded a day earlier.

Data from the Central Bank of Nigeria shows demand pressure for foreign exchange remains high. International payment obligations continue to outweigh FX inflows into the official market.

During Thursday’s trading session, the naira traded within an intraday range of ₦1,356.75 and ₦1,361.50 per dollar. Interbank FX turnover at the NFEM declined to $128.12 million across 121 deals, down from $133.73 million in the previous session.

The parallel market painted a slightly different picture. The naira strengthened marginally to ₦1,370 per dollar, highlighting contrasting dynamics between Nigeria’s official and informal currency markets.

Reserves near $50 billion mark

Despite pressure on the naira, Nigeria’s external reserves continue to show strong momentum. Analysts tracking the market said gross reserves are now approaching $50 billion, levels not seen since 2009. The improvement has boosted investor confidence in the outlook for the local currency heading into 2026.

The Central Bank recently disclosed that Nigeria’s net foreign exchange reserves rose to $34.8 billion at the end of 2025. That figure exceeds the country’s total gross reserves before the FX reforms introduced by the current administration, according to a report by MarketForces Africa.

Investment analysts now project that Nigeria’s net FX position could climb toward $40 billion this year. They attribute the growth to increased crude oil earnings and improved foreign exchange inflows. Financial experts also credit policy reforms by the Central Bank, including a reduction in FX swap and forward obligations that previously weighed on reserve positions.

Global oil prices fall

Global oil prices fell sharply on Thursday after reports suggested the United States was reluctant to escalate military tensions involving Iran. Brent crude, the international oil benchmark, dropped more than 3 per cent to $94.78 per barrel. West Texas Intermediate futures declined 3.5 per cent to $92.64.

According to reports from U.S. media outlets, President Donald Trump told aides that a temporary ceasefire involving Iran appeared to be holding despite isolated clashes in the region. The development eased fears of an immediate supply disruption in global oil markets.

Analysts say movements in oil prices remain critical for Nigeria’s economy. Crude exports continue to serve as the country’s largest source of foreign exchange earnings and external reserve growth.

The CBN has stated that the naira is not artificially propped up. Governor Olayemi Cardoso told journalists in Abuja after the Monetary Policy Committee meeting that recent stability is market-driven, following reforms and increased liquidity. He pointed out that after two years of foreign exchange market reforms, the market had become much more transparent and market-driven.