Naira Holds Steady at N1,364/$ as CBN Reforms Support Market Stability

By Queen Madaki

The naira closed the first trading week of May 2026 on a relatively stable note against the United States dollar, settling at N1,364/$ in the official foreign exchange market.

Data from the Central Bank of Nigeria (CBN) showed the local currency maintained positive momentum for most of the week, reinforcing signs of improving stability in Nigeria’s foreign exchange market, The Business Bureau reports.

The latest performance extends gains recorded at the end of April and reflects growing investor confidence in ongoing foreign exchange reforms introduced by the CBN.

What the Data Is Saying

The naira traded within a relatively narrow band during the week, highlighting reduced volatility and improved market confidence.

• Friday: N1,364/$
• Thursday: N1,358.01/$
• Wednesday: N1,361/$
• Tuesday: N1,362/$
• Monday: N1,367.5/$

Two weeks earlier, the currency had weakened to N1,383/$, meaning the naira gained approximately N19 against the dollar over the period.

Compared with the previous week, the local currency also posted stronger levels:

• Thursday (previous week): N1,374/$
• Wednesday: N1,370.5/$
• Tuesday: N1,383/$
• Monday: N1,369/$

Naira Continues Recovery from April Weakness

The recent appreciation underscores the naira’s steady recovery from pressures experienced at the beginning of April.

• April 1: N1,376/$
• April 2: N1,382.75/$
• April 7: N1,389/$
• April 9: N1,365/$

The Business Bureau previously reported that the naira closed April 2026 at N1,374/$ compared with N1,387/$ at the end of March, marking the currency’s first April gain since 2024.

External Reserves Slip Slightly

Despite the currency’s gains, Nigeria’s external reserves declined marginally, indicating a modest reduction in the CBN’s intervention buffer.

• May 7, 2026: $48.33 billion
• May 4, 2026: $48.34 billion

The movement represents a decline of approximately $14.8 million over the period.

CBN Maintains Optimistic Outlook

Market participants say the CBN has continued to restrict Bureau De Change (BDC) operators’ access to the official foreign exchange market as part of efforts to improve transparency and curb speculative activities.

Earlier in April, Nigeria’s external reserves fell by about $731 million within three weeks, but the apex bank has maintained confidence in the country’s external position.

The CBN projects that reserves could rise to $51 billion by the end of 2026 as part of its broader macroeconomic stabilisation and confidence-restoration agenda.

Attention Turns to MPC Meeting

Investors are now focused on the Central Bank’s 305th Monetary Policy Committee (MPC) meeting scheduled for May 19–20, 2026.

The meeting follows the February 2026 interest rate cut and is expected to provide further guidance on the Monetary Policy Rate (MPR) and the outlook for inflation, exchange rates, and economic stability.

Analysts say the naira’s ability to sustain recent gains will depend on continued policy discipline, improved foreign exchange liquidity, and stronger non-oil dollar inflows.