Nigeria’s foreign exchange market needs stronger and steady dollar inflows from exports and investment to keep the naira stable after the currency closed June with a slight monthly loss, financial analysts have said.
They said recent reforms by the Central Bank of Nigeria have improved confidence in the market, but long-term stability will depend on the country’s ability to earn more foreign exchange through oil production, non-oil exports and foreign direct investment.
Financial economist at Kwik Securities Ltd, Mallam Muftau Yusuf, said the exchange rate now shows more stability than it did a year ago. He said the next task is to increase Nigeria’s foreign exchange earnings.
Naira depreciates slightly at official, parallel markets today May 19
Naira holds steady at N1,360/$ officially, N1,400/$ at parallel market
Naira holds steady against dollar markets June 3, 2026
“The exchange rate has become more predictable than it was a year ago. What is needed now is sustainable foreign exchange earnings that can support long-term stability,” he said.
Economist Dr Femi Ojelabi said the smaller gap between official and parallel market rates has reduced speculative activity. He said more traders now use the official market because price discovery has become more efficient.
Ojelabi also said exchange rate stability should be backed by policies that improve domestic production.
“Exchange rate stability is positive for businesses, but it should translate into lower inflation and improved productivity for the economy to fully benefit,” he said.
The analysts also said the Central Bank of Nigeria is likely to continue managing market liquidity during the third quarter while seasonal import demand and developments in the global market affect foreign exchange demand.
Data published on the Central Bank of Nigeria’s website showed the naira closed at N1,376 against the United States dollar on 30 June. It opened the month at N1,366, ending June weaker by N10, or about 0.7 per cent.
During the month, the naira reached its strongest level of N1,356 per dollar on 15 June before falling to N1,389 on June 24. It later recovered slightly before the end of the month.
The 30 June trading session recorded interbank turnover of 269.90 million dollars. No Nigerian Foreign Exchange Market turnover was reported for that day when the figures were published.
Trading activity stayed strong during June. Nigerian Foreign Exchange Market turnover reached 985.56 million dollars on June 15, 923.64 million dollars on June 25 and 910.78 million dollars on 29 June.
The figures show that although exchange rates moved during the month, buying and selling activity in the market stayed active.
The Central Bank of Nigeria has introduced several reforms to improve transparency and liquidity in the foreign exchange market. These include efforts to unify exchange rates and attract more foreign capital into the country.
Those measures have helped the naira perform better than it did one year earlier. The currency closed at N1,532 per dollar on June 30, 2025, compared with N1,376 at the end of June 2026, an improvement of about N156 or 10.2 per cent.
The stronger yearly performance has also been supported by better market transparency, tighter liquidity management, higher diaspora remittances, stronger foreign portfolio investment, increased oil export receipts and efforts to reduce speculative demand for foreign exchange.
Nigeria’s external reserves have also improved. The country’s foreign reserves recently climbed above 51 billion dollars, the highest level since 2009. The reserves increased by more than one billion dollars during the first half of June 2026, supported by stronger foreign exchange inflows.
While the naira ended June slightly weaker than it began the month, analysts said the market has become more stable than in previous years. They maintained that steady export earnings, stronger investment inflows and continued policy support will be needed to keep that progress on track.