The Nigerian currency posted a notable turnaround in April 2026, recording its first appreciation for the month in three years amid improving foreign exchange conditions and stronger market confidence. Data from the Central Bank of Nigeria showed the naira closing at N1,374$, strengthening from N1,387/$ at the end of March. This performance marks a departure from recent trends, as the naira had weakened in every April since 2024. Analysts say the latest gain signals a gradual restoration of confidence in Nigeria’s monetary environment and exchange rate management.
Throughout April, the official foreign exchange market remained relatively stable, with significantly lower volatility compared to March. The previous month had seen sharp fluctuations, including a dip to N1,425/$ before recovery, while April trading stayed within a narrower band of N1,340 to N1,389.
The currency reached its strongest level on April 16, when it appreciated to N1,341.01/$, supported by improved liquidity and reduced demand pressures. This stability reflects a more balanced supply-demand dynamic in the FX market.
Year-on-year data further underscores the naira’s recovery. The April 2026 closing rate of N1,374/$ represents a marked improvement from N1,602/$ recorded on April 30, 2025, highlighting a steady strengthening trend over the past year.
The gains have been attributed to sustained monetary tightening by the central bank and increased foreign exchange inflows. Stronger diaspora remittances, higher oil-related earnings, and reduced speculative demand for the dollar have helped stabilise the market.
Market analysts note that the shift from first-quarter volatility to April stability illustrates the sensitivity of the exchange rate to liquidity levels and investor sentiment, with improved inflows helping to anchor expectations.
Additional data showed the naira continued its upward trajectory into early May. At the Nigerian Autonomous Foreign Exchange Market, it appreciated by N9.71, or 0.7 per cent, to N1,365.23/$, while also gaining against the pound sterling and the euro.
A similar trend was observed in the parallel market, where the naira strengthened to N1,380/$ from N1,385/$, while remaining stable at N1,384/$ at a major bank’s FX desk. Analysts say sufficient liquidity has supported the currency despite an 83 per cent drop in central bank FX interventions in April.
Historically, April has been a challenging month for the naira due to seasonal demand pressures, as businesses increase dollar purchases to restock after the first quarter. In 2024 and 2025, the currency recorded double-digit depreciation during the period.
The 2026 appreciation effectively breaks what analysts describe as the “April Jinx,” suggesting a structural shift in how seasonal liquidity is managed. With continued policy discipline and improved FX inflows, the naira appears to be on a more stable and predictable path.
