The Nigerian currency recorded a slight decline at the official foreign exchange market, as the Naira depreciated by 0.4 per cent against the U.S. dollar. According to data released by the Central Bank of Nigeria (CBN), the currency closed at N1,386.65 per dollar on Tuesday.
This represents a drop of N5.86 compared to the N1,380.79 exchange rate recorded on April 2, prior to the Easter break. The Naira had earlier traded at N1,378.70 per dollar on April 1, indicating a gradual weakening trend over the period.
Despite the recent depreciation, financial analysts have expressed optimism about the currency’s outlook in 2026, citing ongoing monetary and structural reforms by the apex bank. They believe that recent policy measures are beginning to yield positive results, particularly in stabilising the foreign exchange market.
The Centre for the Promotion of Private Enterprise (CPPE) noted that the relative stability of the Naira in the first quarter of the year has contributed to improved business confidence across various sectors. According to the organisation, the currency maintained a relatively steady range, trading between N1,340 and N1,430 per dollar during the period.
The CPPE attributed this stability to several key factors, including improved foreign exchange liquidity and stronger inflows from oil revenues. Rising external reserves have also played a significant role in supporting the currency, with Nigeria’s reserves reportedly surpassing the $50 billion mark.
Economic observers say that the combination of increased dollar supply and policy consistency has helped reduce volatility in the market. This has provided businesses with a more predictable environment for planning and investment decisions.
While short-term fluctuations are expected in the foreign exchange market, analysts maintain that the broader trajectory remains cautiously positive. They argue that sustained reforms, improved fiscal discipline, and continued growth in external earnings will be crucial in maintaining currency stability.
Overall, the slight depreciation reflects normal market adjustments, with stakeholders expressing confidence that the Naira will remain within a manageable range if current economic policies are sustained.
