The naira sustained its recent upward trend yesterday, appreciating to N1,476.35/$1 on the Nigerian Foreign Exchange Market (NFEM), up from N1,480.66/$1 last Friday, according to data released by the Central Bank of Nigeria (CBN).

On the parallel market, the local currency strengthened to N1,505 per dollar from N1,530 per dollar last week. Forex traders attribute the strengthening of the naira to foreign portfolio inflows, improved forex supply from exporters and CBN interventions.

For instance, in their review of last week’s forex activity, analysts at Coronation Merchant Bank stated: “The naira extended its positive momentum last week, appreciating modestly against the US Dollar by 0.49 per cent w/w (N7.24 w/w gain). The performance was primarily driven by foreign portfolio inflows and improved supply from exporters.

“In the parallel market, the currency mirrored this trend, appreciating by 1.67 per cent w/w (N25.00 w/w). Consequently, the premium between the two markets narrowed significantly to N19.34/$1, from N37.10/$1 in the previous week. “At the NAFEM window, total FX inflows rose to $984.10 million, compared with $605.00 m in the prior week.

In terms of inflow composition, Foreign Portfolio Investments accounted for the largest share at $318.10 million (32.32%), followed by exporters (25.06%), non-bank corporates (18.32%), the CBN (14.89%), Foreign Direct Investments (5.67%), and other sources (3.74%).”

They further said: “Meanwhile, gross external reserves increased by $192.95 million (0.46%) to settle at $42.23 billlion as of Thursday, September 28, 2025, according to CBN data. We anticipate a mild appreciation of the naira in the near term, supported by sustained foreign portfolio flows and CBN interventions.”