The naira strengthened at the official Nigerian Foreign Exchange Market on Monday to close at 1,442.51/$, data from the Central Bank of Nigeria has indicated.

This marks the fourth consecutive day of appreciation of the local currency from 19 December, when it dropped to 1,464.49/$, indicating improved dollar liquidity, supply conditions, or a moderation in demand as the year drew to a close. The absence of sharp reversals also indicates relative stability and improved price discovery within the market. However, at the parallel market, the naira depreciated 0.42 per cent to 1,461/$.

This also indicated that the Christmas Day US strikes in Nigeria didn’t stir investors so much, a complete departure from how the market reacted when the US president issued the threat of military intervention on Nigerian soil earlier in November.

Nerves may also have been calmed by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, who, in a statement before the markets opened following the Christmas break, assured investors that the country was not at war but that the strikes were aimed at reinforcing economic confidence.

The PUNCH reported that Edun said, “The operation in question was precise, intelligence-led, and focused exclusively on terrorist elements that threaten innocent lives, national stability, and economic activity. Far from destabilising markets or weakening confidence, such actions strengthen the foundations of peace, protect productive communities, and reinforce the conditions required for sustainable growth. Security and economic stability are inseparable; every effort to safeguard Nigerians is, by definition, pro-growth and pro-investment.”

At the local bourse, the Nigerian Exchange Limited, the Christmas rally continued with the All-Share Index climbing 0.55 per cent to 154,389.53 points, thus restoring the year-to-date gain to 50 per cent for the first time since 28 October 2025. At the same time, market capitalisation grew by N541.73bn to N98.43tn, driven by investors realigning their portfolios in anticipation of the New Year.

At the international capital market, Cowry Assets Management reported that Nigerian Eurobonds had a positive outing on Monday, saying, “Nigerian Eurobonds ended on a positive note, with average yields declining 1 bp to 7.03 per cent, signalling robust global investor demand for Nigeria’s dollar-denominated debt securities.”

A day after the US strikes, OilPrice reported that crude oil prices recorded their most substantial weekly gain since October, with both Brent and West Texas Intermediate rising by over $2 per barrel, driven by escalating US pressure on Venezuela and the US military strike in Nigeria.

There had been expectations that the military action, with more expected, would heighten geopolitical concerns and thus make crude oil prices increase.

Meanwhile, analysts have warned that rising insecurity remains a top concern as the country heads into the New Year.