Naira Holds Steady as CBN's $190 Million Boost Sparks Fresh Investor Optimism

• The naira has remained stable, thanks to the CBN reforms and a recent $190 million intervention aimed at improving the FX market
• Despite global and local challenges, the naira has shown resilience, with a narrowing gap between official and parallel market rates
• This stability has earned Nigeria positive recognition from institutions like Fitch Ratings and the World Bank

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

The naira has remained stable across different markets, helped by a recent $190 million intervention by the Central Bank of Nigeria (CBN).

Experts say this stability is encouraging investors and building trust in the Nigerian economy.

Even though there have been challenges both locally and globally, the naira has shown steady performance in recent months.

This improvement is largely attributed to new policies introduced by the CBN to enhance the efficiency of the foreign exchange (FX) market.

These reforms have not only reduced daily fluctuations in the naira's value but also increased transparency in how foreign exchange is managed, which has strengthened confidence in the market.

While many countries are struggling with unstable currencies due to global conflicts and trade disputes, the naira has managed to remain relatively stable.

The naira closed the trading week on Friday, May 30, exchanging at N1585 to a dollar in the official Nigerian Foreign Exchange Market (NFEM).

In the parallel market, the naira appreciated slightly between Thursday and Friday, rising from N1,625 to a selling rate of N1,623 and a buying rate of N1,610, leaving a margin of N13.

Thanks to regular CBN interventions—like the recent $190.4 million injection—analysts believe the naira is likely to remain steady in the near future, especially as international trade tensions ease.

When compared to its 2024 performance, the naira has shown better resilience and maintained a more stable outlook, despite ongoing economic challenges.

CBN Governor Olayemi Cardoso has expressed hope that the bank’s efforts will soon benefit all Nigerians.

He acknowledged the tough economic conditions, including high inflation and a weak currency, but said the CBN is working hard to turn things around.

Cardoso has focused on key issues such as stabilising the exchange rate, reducing inflation, strengthening banks, and creating a better business environment.

Some of the CBN's major reforms, like unifying exchange rates and reducing its direct involvement in the FX market, have attracted more foreign investment into the country.

Letting the naira float and clearing over $7 billion in FX backlog has improved Nigeria’s image globally.

Institutions like the World Bank have praised these steps as bold moves that support long-term economic growth.

As of May 16, Nigeria’s foreign reserves stood at about $38.9 billion, enough to cover over seven months’ worth of imports. This increase in reserves came alongside growing support from the international financial community.

In April, global ratings agency Fitch upgraded Nigeria’s credit rating from 'B-' to 'B', with a stable outlook. This upgrade came during a time of global uncertainty, showing strong support for Nigeria’s ongoing economic reforms.

Other global institutions have also recognised Nigeria’s progress. Much of this renewed confidence is tied to the CBN’s efforts to improve transparency and gain the trust of foreign investors, who have long raised concerns about unclear data and unpredictable policies.

CBN slashes customs exchange rate

In related news, Legit.ng reported that the CBN had slashed customs exchange rates for importers clearing goods at the ports.

According to data from Nigeria's trade portal, importers looking to clear goods will pay N1,579.941 per dollar from Monday, May 26, 2025.

The apex bank set the exchange rate based on the performance of the naira in the foreign exchange market.

Source: Legit.ng