The Nigerian naira strengthened slightly against the US dollar on Friday, recording gains in both the official and parallel foreign exchange markets.
In the parallel market, the naira appreciated to ₦1,545/$ from Thursday’s ₦1,552/$. At the official Nigerian Foreign Exchange Market (NFEM), data from the Central Bank of Nigeria (CBN) showed the currency closed at ₦1,531/$, compared to ₦1,533/$ the previous day a 0.14% rise by month’s end.
Analysts linked the improvement to stronger foreign exchange inflows, boosted by higher diaspora remittances and greater participation from foreign portfolio investors (FPIs).
Nigeria’s external reserves also climbed by $1.72 billion to $41.3 billion during the month, reinforcing the CBN’s ability to stabilize the naira.
CBN Governor, Yemi Cardoso, revealed that diaspora remittances surged by 200% to $600 million over the past two months, significantly strengthening Nigeria’s FX profile. Offshore portfolio inflows equally improved, rising from $1.5 billion in June to $1.7 billion in July, reflecting investor confidence supported by stable macroeconomic policies and attractive carry trade prospects.
Cardoso noted that streamlined remittance channels and steadier exchange rates have reduced reliance on informal transfers, while rising inflows continue to diversify Nigeria’s FX base beyond oil revenue.