The Nigerian naira posted a marginal appreciation on Thursday, May 7, 2026, against the United States dollar in both the official Nigerian Foreign Exchange Market (NFEM) and the parallel market, as improved liquidity conditions and sustained Central Bank of Nigeria (CBN) interventions helped steady trading activity.
The slight gains reflect a market still under pressure, but showing signs of relative stability compared to recent weeks of volatility.
Official Market Records Mild Appreciation
In the official NFEM window, data from the CBN indicated that the naira strengthened to about ₦1,361 per dollar, improving slightly from roughly ₦1,362 in the previous trading session.
Although the movement was modest, traders noted a noticeable uptick in market activity. Interbank turnover reportedly rose sharply to around $158.2 million, a significant jump from $71.6 million recorded the previous day, suggesting increased participation from market players and better dollar availability.
A Lagos-based financial analyst described the movement as “small but meaningful in the context of recent liquidity constraints,” adding that “the market is reacting gradually to improved supply conditions rather than sudden policy shocks.”
Parallel Market Still Under Pressure but Slightly Firmer
In the informal or parallel market—commonly referred to as the black market—the naira also recorded a mild gain. The dollar exchanged at approximately ₦1,380, improving from around ₦1,382 earlier in the week.
Currency dealers in Lagos and Abuja said rates continued to fluctuate depending on demand intensity and transaction size.
One Bureau de Change operator in Lagos said: “It is not a sharp recovery, but we are seeing slightly better dollar availability than before. The demand is still strong, especially from importers and individuals paying school fees abroad.”
Despite the marginal improvement, the spread between the official and parallel markets remained wide at about ₦21, underscoring persistent pressure in retail forex demand.
CBN Interventions and Market Sentiment
Market participants largely attributed the relative stability to ongoing interventions by the Central Bank of Nigeria aimed at improving liquidity and reducing exchange rate volatility.
A currency trader in Abuja noted: “Whenever the CBN supplies the market consistently, you see less panic buying. That is what is helping to keep things from getting worse.”
However, analysts caution that demand remains structurally high, driven by import dependence, travel-related payments, and business obligations requiring foreign currency.
Outlook: Stability Hinges on Dollar Inflows
Looking ahead, market observers expect the naira to trade within a relatively stable but narrow range in the short term—provided foreign exchange inflows improve and external reserves remain supportive.
An economist summed up the sentiment: “The direction of the naira will depend less on daily interventions and more on sustained inflows from exports, remittances, and portfolio investments.”
For now, the currency’s mild gains offer cautious optimism, even as underlying pressures in the FX market remain firmly in place.