Victor EzejaThe Nigerian naira has maintained relative stability in the foreign exchange market, closing the month of May on a positive note.
The local currency gained N16.03 against the United States Dollar at the official window of the foreign exchange market.
Join our WhatsApp ChannelAccording to the Central Bank of Nigeria (CBN) data on Nigeria Foreign Exchange Market (NFEM) Rate, the naira recorded N1,602.18 per dollar at the beginning of the month and closed at N1586.15 per dollar Friday, 30 May, reflecting N16.03 gain against the dollar. The CBN data show that the naira traded between a high of N1,589 and a low of N1,584.50.
The story is, however, different at the parallel or black market, where it recorded depreciation. After exchanging for N1,605 per dollar at the beginning of the month, the naira dropped to N1,620 on Friday, 30 May at the black market.
The persistent volatility and segmentation in Nigeria’s foreign exchange market are highlighted by the performance differences between the official and parallel market groups.
Over the month, there was a modest rise in Nigeria’s external reserves. According to CBN data, reserves climbed from $38.00 billion at the start of May to $38.46 billion on May 29, 2025, a rise of $460 million or 1.2 percent. This increase suggests stronger dollar inflows and could give the CBN more power to continue its market interventions meant to keep the naira stable.
Looking ahead, the naira may continue on its current course in the upcoming month if the CBN sustains its intervention to boost liquidity, says analysts at Afrinvest Securities Limited.
“Next month, we anticipate the naira will maintain similar performance across FX segments, supported by CBN’s continued intervention,” the analysts stated.
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The CBN has been intervening in the market to boost liquidity and meet daily demands by corporates and individuals seeking FX for various needs.
In his remarks at the end of the 300th Monetary Policy Committee meeting on Tuesday, CBN Governor, Dr Olayemi Cardoso, said the naira is stable and currently a more competitive payment system for trade across the West Africa region.
He said that given the relative stability in the foreign exchange market, MPC members urged the apex bank to sustain implementation of the ongoing reforms to further boost the economy.
Analysts have continued to advise that the only sustainable way of increasing and sustaining the value of the naira is scaling up domestic production across sectors to increase exports and foreign exchange earnings.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
