Nigeria's currency gained ground Wednesday after foreign exchange turnover surged dramatically at the official market window. The naira climbed 0.7 percent against the dollar, which traded at N1,357.34 compared to N1,366.56 the previous day.
Data from the Central Bank showed impressive activity across the Nigerian Foreign Exchange Market. Turnover jumped 59.22 percent to $424.46 million, up from $266.58 million on Tuesday.
Total transaction deals also climbed notably. Merchants executed 287 deals Wednesday, a 25 percent rise from Monday's 262 transactions.
The interbank segment saw even stronger momentum. Dealers completed 161 trades Wednesday, up 62.6 percent from 99 the day before.
Interbank turnover more than doubled. Volume hit $158.18 million, representing a 120.95 percent jump from Tuesday's $71.59 million.
However, Nigeria's external reserves moved in the opposite direction. According to CBN figures, reserves fell to $48.33 billion as of May 5, 2026.
In the parallel market, the naira held its position. Traders quoted the currency between N1,395 and N1,400 per dollar.
This created a widening gap between official and unofficial markets. The spread reached approximately N43 per dollar between the two segments.
A Foreign Money Dealers Association report noted broad gains for the naira in April. Total NFEM turnover for the month reached $8.51 billion.
Global financial conditions drove currency movements more than oil prices, according to the FMDA analysis. March's higher oil output and rising portfolio inflows both supported the local unit.
Looking forward, dealers expect some headwinds ahead. Maturing securities, particularly over N7 trillion in Central Bank intervention operations, could weigh on the currency.
Relief may come from other sources though. Autonomous inflows are anticipated to cushion against sharp volatility in coming weeks.
