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Nigerian Naira shows volatility amid shifting FX demand and liquidity
The Nigerian naira has experienced periods of both appreciation and depreciation against major global currencies, driven by fluctuating foreign exchange liquidity and demand. In recent trading sessions, the naira has seen rates ranging from approximately N1,340 to N1,353 per US dollar in the official market, while parallel market rates have remained higher, with some estimates placing them near N1,415 to N1,700 per dollar.
Data from the Central Bank of Nigeria (CBN) indicates a significant shift in market dynamics, including a 35.23 percent decline in dollar demand by end-users in April 2026, falling to $3.42 billion. This decline in demand coincided with a strengthening of the naira, which saw its monthly average exchange rate improve by 1.38 percent.
Sectoral analysis shows that visible imports, particularly within the industrial and manufacturing sectors, remain major drivers of foreign exchange utilization. Meanwhile, invisible imports are dominated by financial services. Despite fluctuations in turnover and demand, Nigeria's net foreign exchange position improved, with net inflows rising to $5.85 billion in April compared to $4.16 billion in March, supported by expanded external reserves reaching approximately $52.2 billion.
Entities
Central Bank of Nigeria · FMDQ Securities Exchange · FMDQ Security Exchange · Naira · Nigeria · Nigerian Naira
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The British pound traded at 1,819 naira per pound during Tuesday's session. nairametrics.com
- [○ 1 SOURCE] Parallel market rates for the US dollar were reported at a selling rate of 1,415 naira and a buying rate of 1,405 naira.
- [DISPUTED] Nigeria's external reserves have reached approximately 52.2 billion US dollars. nairametrics.com
- [○ 1 SOURCE] The naira closed at 1,353 per US dollar on August 19, 2026, according to FMDQ Security Exchange data.