Naira Trades at New Rate as CBN Injects N9.71 Trillion to Boost Value
- Naira appreciated by 1.42% against the dollar in April, closing at N1,361.51/$
- CBN injected N9.71 trillion through OMO bills to stabilise the currency
- Market analysts note reduced volatility signals growing investor confidence in Nigeria's economy
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s foreign exchange market recorded one of its most stable performances in recent months as the naira appreciated against the United States dollar in April 2026, supported by aggressive liquidity management measures by the Central Bank of Nigeria (CBN).
According to the latest market data, the naira strengthened by 1.42 per cent during the month, gaining N19.67 to close at an average spot exchange rate of N1,361.51/$, compared with N1,381.18/$ recorded in March.
The appreciation comes amid sustained efforts by the apex bank to tighten liquidity conditions and reduce pressure on the foreign exchange market, which has battled persistent volatility over the past year.
Source: Getty Images
CBN injects N9.71 trillion through OMO bills
A major factor behind the naira’s improved performance was the CBN’s aggressive use of Open Market Operations (OMO) bills to absorb excess liquidity from the banking system.
During April, the central bank issued OMO bills worth N9.71 trillion, representing a significant increase of N2.09 trillion or 27.37 per cent compared with the N7.62 trillion sold in March.
The move highlights the monetary authority’s determination to curb inflationary pressures, reduce excess naira liquidity and support exchange rate stability.
By withdrawing large volumes of money from circulation, the CBN effectively reduced speculative demand for foreign currency while making naira-denominated assets more attractive to investors.
Exchange rate volatility drops sharply
The latest figures also revealed a notable decline in exchange rate volatility.
The naira traded within a narrower range of N1,341.01/$ to N1,389/$ throughout April, compared with the wider band of N1,345/$ to N1,425/$ recorded in March.
Market analysts believe the reduced fluctuations signal growing confidence among investors and market participants, as fears of sharp currency swings continue to ease.
The narrower trading range also suggests that speculative attacks on the naira have moderated, allowing the currency to maintain a more predictable trajectory.
Investors respond to attractive yields
Analysts at Cordros Capital attributed the improved market conditions to the CBN’s commitment to maintaining tight liquidity through elevated OMO rates.
According to the firm, higher yields on government securities have continued to attract foreign portfolio investors into Nigeria’s fixed-income market, boosting dollar liquidity and helping to stabilise the exchange rate.
Similarly, analysts at Cowry Asset Management said the combination of aggressive liquidity sterilisation and improved transparency in the FX market has contributed significantly to the moderation in currency volatility.
They noted that the gradual narrowing of exchange rate movements indicates that recent policy reforms are beginning to restore confidence among both local and foreign investors.
Can the naira sustain the momentum?
Despite the positive trend, analysts caution that maintaining the naira’s recent gains will require stronger and more sustainable sources of foreign exchange inflows.
Experts at Comercio Partners said the currency’s stability reflects easing panic demand for dollars and improving liquidity conditions.
However, they warned that long-term stability will depend on Nigeria’s ability to generate higher FX earnings from crude oil exports, diaspora remittances and foreign direct investment.
Source: Getty Images
While the naira’s April performance offers fresh optimism, market watchers say the coming months will determine whether the currency can maintain its upward momentum amid global economic uncertainties and domestic inflationary pressures.
Naira holds ground against the US dollar
Legit.ng earlier reported that Nigeria’s currency showed renewed resilience on Wednesday, May 20, as the naira held firm against the US dollar at the official foreign exchange market, following the decision of the Central Bank of Nigeria (CBN) to retain its benchmark interest rate at 26.5%.
The development comes amid growing investor optimism over the country’s improving foreign reserves, ongoing economic reforms, and efforts by the apex bank to maintain exchange rate stability despite global economic uncertainty.
Data from the CBN showed that the naira appreciated slightly by 53 kobo at the Nigerian Foreign Exchange Market (NFEM), closing at N1,373.34 per dollar on Wednesday, May 20, compared to N1,373.87 recorded on Tuesday.
Source: Legit.ng
