Naira Appreciates to Seven-Month High of N1,506/$ at Official FX Market

The naira on Tuesday appreciated to N1,506.08 per dollar at the official foreign exchange (FX) market, its strongest performance in seven months. The last time the currency traded this strongly was on March 5, when the rate closed at N1,500.8/$1.

Data from the Nigeria Foreign Exchange Market (NFEM), the platform overseeing official FX transactions, showed the local currency strengthened marginally by 0.05 per cent to N1,506.08/$ from N1,506.84/$ recorded on Monday. The gain follows an earlier appreciation to N1,521.45/$ on September 3 at the same market window.

The federal government has consistently linked recent improvements in the currency to ongoing fiscal and monetary reforms, particularly the removal of fuel subsidies and the liberalisation of the exchange rate.

“And with the removal of fuel subsidies and the liberalisation of the exchange rate, these difficult decisions have also been taken because they were necessary and they’re yielding positive results,” a government official said.

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The minister further highlighted broader policy priorities aimed at stabilising the economy. “In addition, the government’s priorities include debt transparency, growth-enhancing borrowing, domestic revenue mobilisation, as I’ve emphasised, and coordinated debt treatment. And what are the results?” he added.

Officials maintain that these reforms are beginning to bear fruit. According to the minister, “the Nigerian economy is turning the corner.”