Naira Closes May at N1,372/$ as Gains Hold Despite Minor Dip

The naira ended May 2026 at N1,372 per US dollar, a slight decline from N1,367/$ recorded at the end of April. The 0.36 percent depreciation did little to overshadow the currency’s strong performance over the past year.

Compared to the N1,585.50/$ exchange rate at the end of May 2025, the naira has appreciated by N213.50. That represents a 13.5 percent gain against the dollar. The improvement reflects increased stability in the foreign exchange market, supported by stronger liquidity, ongoing reforms and growing investor confidence.

Data from the Central Bank of Nigeria showed that the naira opened May at N1,367.50/$ and strengthened to N1,358.01/$ on May 7, its best level during the month. For most of May, the currency traded within a narrow range of N1,372/$ to N1,375/$ before closing at N1,372/$ on May 29. Analysts say the limited movement in the exchange rate suggests a period of consolidation in the foreign exchange market after months of volatility.

The naira also managed to retain most of the gains it recorded in April, when it appreciated from N1,387/$ at the end of March to N1,374/$ by month-end. The currency’s stability has been further supported by improvements in Nigeria’s external reserves and sustained confidence in the foreign exchange market. As a result, expectations are growing that exchange rate volatility may continue to ease in the coming months.

Meanwhile, the Central Bank of Nigeria maintained its tight monetary policy stance at its most recent Monetary Policy Committee meeting. The apex bank retained the Monetary Policy Rate at 26.5 percent, kept the Cash Reserve Ratio for commercial banks at 45 percent and 16 percent for merchant banks, while also retaining the asymmetric corridor around the MPR at +500/-100 basis points. According to the CBN, the measures are aimed at consolidating gains in inflation control and preserving stability in the foreign exchange market.