For the first time in several years, Nigeria’s foreign exchange market delivered a positive April outcome, with the naira closing the month stronger against the US dollar amid signs of calmer trading conditions and improving liquidity.
Data from the Central Bank of Nigeria shows the currency appreciated month-on-month, finishing April 2026 at N1,374/$, compared with N1,387/$ recorded at the end of March. This marks a modest but notable recovery in a market that has experienced sustained pressure in recent years.
In simple terms, the monthly movement reflects a gain of N13 against the dollar over the period, supported by more stable supply-demand dynamics in the official window.
Market data suggests that April was characterised by a relatively narrow trading range, with the naira fluctuating between N1,340 and N1,389 during the month. Analysts point to this as evidence of reduced speculative activity and more balanced FX flows.
A key summary from the data noted: “Overall, the data points to reduced volatility and improved liquidity conditions in the official foreign exchange market during the review period.”
The currency also showed stronger year-on-year performance, appreciating from N1,602/$ recorded on April 30, 2025, highlighting a broader recovery trend when compared with last year’s levels.
The improvement comes after a turbulent March, when the naira came under renewed pressure before stabilising toward month-end.
In March 2026, the currency weakened to N1,425/$ before recovering to close at N1,387/$. April opened slightly stronger at N1,376/$, briefly dipped, and then gradually appreciated through the second half of the month.
The strongest level recorded during April was N1,341.01/$ on April 16, suggesting that FX inflows and easing demand pressures helped support the recovery trajectory.
As one market summary put it: “Sustained FX inflows and improved confidence helped stabilise trading patterns.”
Several macroeconomic factors contributed to the improved tone in the FX market, including stronger diaspora remittances, oil-related inflows, and reduced speculative demand for foreign currency. Tight monetary conditions also played a stabilising role.
According to earlier reporting by Nairametrics, restrictions on Bureau De Change access to the official FX market have remained in place as part of the central bank’s broader control measures.
At the same time, Nigeria’s external reserves reportedly declined by about $731 million in the first three weeks of April, even as the central bank maintained an optimistic outlook for medium-term stability.
Despite the April appreciation, market participants continue to view sustainability as the key question. The naira’s recent strength is being closely tied to liquidity conditions and policy interventions, both of which can shift quickly.
The central bank has previously projected that reserves could reach $51 billion by the end of 2026, under its broader macroeconomic stabilisation and confidence restoration agenda.
For now, April stands out as a rare month of relative calm—offering a tentative signal that improved FX flows and policy tightening may be beginning to reshape short-term currency dynamics.