Market News

By Jide Ajia

The Nigerian naira recorded a significant milestone in April 2026, marking its first monthly appreciation for the month of April in three years. According to data from the Central Bank of Nigeria, the local currency strengthened to close the month at N1,374/, representing a steady gain from the N1,387, recorded at the end of March.

This performance marks a historical shift, as the naira had closed weaker every April since 2024, signalling a gradual return of confidence in the nation’s monetary environment.

The official foreign exchange market sustained a broadly stable trajectory throughout the review period, characterised by significantly reduced volatility compared to the previous month. While March was defined by turbulence that saw the currency weaken to N1,425/$ before recovering, April saw the naira trade within a relatively narrow band of N1,340 to N1,389.

The currency reached its peak strength for the month on 16 April, hitting N1,341.01/$, supported by improved liquidity conditions and the containment of intermittent demand pressures.

On a year-on-year basis, the naira’s performance reflects a notable recovery from the levels seen in 2025. The closing rate of N1,374/, represents a substantial improvement from the N1,602/ recorded on April 30, 2025. This strengthening trend has been largely attributed to a combination of sustained monetary tightening by the CBN and a steady increase in foreign exchange inflows. Specifically, stronger diaspora remittances, oil-related inflows, and a decline in speculative demand for the dollar played pivotal roles in anchoring market expectations.

Market analysts observe that the transition from the volatility of the first quarter to the current stability highlights the sensitivity of the exchange rate to liquidity and market sentiment.

The overall data points to a market benefiting from improved activity and reduced pressure from speculators. With sustained efforts to enhance FX liquidity and anchor expectations through disciplined monetary policy, the naira appears to be moving towards a more predictable and sustainable trajectory.

Historically, April has been a month of pressure for the Nigerian foreign exchange market. Since the currency float and unification reforms of 2024, the naira typically faced “seasonal headwinds” during this period.

Businesses often ramp up dollar demand in April to replenish inventories following the first-quarter sales cycle.

In 2024 and 2025, the naira experienced double-digit depreciation during April. The 2026 gain marks the first time in three years that the “April Jinx” has been broken, suggesting a structural shift in how the Central Bank manages seasonal liquidity.