Naira records first April gain in NAFEX era

Naira records first April gain in NAFEX era

The Naira strengthened against the United States dollar in April 2026, appreciating month-on-month from its March closing of N1,387/$ to close the month at N1,374/$.

This is according to data from the Central Bank of Nigeria (CBN).

This is the first time the Naira has closed the month of April with a gain, having closed weaker every year since 2024.

The performance reflects a period of improved stability in the foreign exchange market and a gradual return of confidence in Nigeria’s monetary environment.

The gain also marks a notable recovery when compared with levels seen a year earlier.

The official foreign exchange market showed that the local currency sustained a broadly stable trajectory throughout April, with reduced volatility compared to March. Trading activity remained within a relatively narrow band, supported by improved liquidity conditions and intermittent demand pressures that were largely contained during the month.

What the data is saying

Data from the official foreign exchange market indicates that the naira ended April 30, 2026, at N1,374/$, reflecting a steady recovery from earlier pressure points recorded in March. The currency also showed stronger year-on-year performance compared to the same period in 2025.

This represents a gain of N51 within the monthly comparison period

On a year-on-year basis, the naira improved from N1,602/$ recorded on April 30, 2025

The currency traded within a relatively stable range of N1,340 to N1,389 during April

Overall, the data points to reduced volatility and improved liquidity conditions in the official foreign exchange market during the review period.

The naira’s movement suggests a gradual strengthening trend supported by improved market activity and reduced speculative pressure.

More Insights

April’s performance contrasts sharply with the turbulence observed in March 2026, when the currency experienced significant pressure before staging a recovery. The transition between both months highlights the sensitivity of the exchange rate to liquidity conditions and market sentiment.

In March, the naira weakened to N1,425/$ before recovering to close at N1,387/$

April opened at N1,376/$ and briefly weakened before a steady appreciation trend emerged

The strongest level recorded in April was N1,341.01/$ on April 16

Sustained FX inflows and improved confidence helped stabilise trading patterns

Stronger diaspora remittances, oil-related inflows, and reduced speculative demand for dollars were also key supporting factors.

Sustained monetary tightening by the Central Bank of Nigeria and efforts to enhance liquidity in the FX market further helped anchor expectations and limit sharp swings in the exchange rate.

What you should know 

Nairametrics reported earlier that traders have said the CBN had maintained restrictions on Bureau De Change (BDC) operators’ access to the official foreign exchange market, citing concerns over control and past abuses.

Nairametrics reported earlier that Nigeria’s external reserves declined by about $731 million within the first three weeks of April 2026.

Despite the recent dip, the CBN maintains an optimistic outlook for the country’s external reserves.

The apex bank had previously projected that reserves could reach $51 billion by the end of 2026 as part of its broader macroeconomic stabilization and confidence-restoration agenda.

The naira’s appreciation in April 2026 is expected to have broader implications for inflation dynamics, import costs, and investor sentiment in the Nigerian economy. However, sustainability remains a key concern for market participants.

Source:https://nairametrics.com/2026/05/04/naira-records-first-april-gain-in-nafex-era/