Naira slips 1.1% in June despite surge in FX trading turnover
By Aboki Forex —
The naira closed June 2026 slightly weaker in the official foreign exchange market, even as trading activity surged to its highest levels in months. The currency depreciated by 1.1 percent against the dollar, settling at N1,532/$1 on June 30, 2025.
Despite the modest depreciation recorded in June, the naira remains significantly stronger than it was a year earlier. The currency has appreciated by about N156, or 10.2 percent, over the past 12 months.
Robust trading activity signals improving liquidity
Trading activity remained robust during the period, highlighting sustained liquidity in the official foreign exchange market. Higher FX turnover points to growing resilience in Nigeria’s currency market, with more dollars changing hands through the official window.
The increased turnover suggests that the Central Bank of Nigeria’s liquidity management strategy is gaining traction, even if the naira has not strengthened further in the short term.
Analysts say FX management is no longer the main challenge
According to analysts, Nigeria’s immediate challenge is no longer exchange rate management but expanding sustainable sources of foreign exchange through higher oil production, stronger non-oil exports and increased foreign direct investment.
“We expect the CBN to maintain its liquidity management and market intervention strategy in the third quarter as seasonal import demand and global market developments continue to shape foreign exchange conditions,” one analyst said.
What this means for the naira and Nigerian businesses
The modest slippage in June does not erase the significant gains the naira has made over the past year. For businesses, the stable official window and improved liquidity reduce the uncertainty that plagued the market in 2024. However, the sustainability of these gains depends on Nigeria’s ability to earn more dollars from oil and non-oil sources, not just on CBN interventions.