Nigerian Naira Strengthens to N1,362 Per Dollar on July 25, 2026

The Nigerian naira rallied sharply on July 24-25, 2026, appreciating to N1,362.09 per dollar at the official rate, up from N1,367.76 the previous day. The black market rate strengthened to N1,410 from N1,420. The gains reflect Nigeria’s foreign reserves standing at $52.02 billion and rising crude oil prices, which hit $100 a barrel for the first time since May as Middle East tensions escalated.

Naira posts strongest week in months

The naira gained N5.67 on a single day and N18.19 for the week at the official market, according to Central Bank data. On the parallel market, the currency appreciated N10 daily and N15 weekly. Interbank FX turnover shrank 20% to $334.126 million on Thursday, suggesting traders moved quickly to close positions before the weekend.

Foreign reserves and oil prices fuel the rally

Nigeria’s foreign reserves climbed above $52 billion, providing a buffer that underpins currency stability. Brent crude oil, the global benchmark, rose more than 6% on Thursday following US military strikes against Iran and Houthi militia attacks on tankers in the Red Sea. Oil prices hit $100 a barrel for the first time since May, boosting Nigeria’s export revenues and investor confidence in the naira’s medium-term strength.

FX reforms and reduced backlog support momentum

Analysts at Broadstreet noted that Nigeria cleared forex market hurdles through FX reforms and settlement of all backlogs, giving the naira momentum beyond intermittent price swings. The Central Bank’s Monetary Policy Committee held rates steady at 26.5% for a second consecutive meeting, reinforcing commitment to price and exchange rate stability. Economists expect rates to remain unchanged through the rest of 2026 as inflation risks persist, but the policy stance protects the naira from depreciation.

Pound sterling weakens slightly against the naira

For UK investors tracking the naira, the British pound traded at 1,824.22 nairas on July 25, down 0.015% from the previous day and 1.666% weaker over the past week. The pound hit a low of 1,822.23 on July 24, reflecting the naira’s broader strength. Some traders forecast the naira to weaken in the near term due to fuel importers front-loading dollar purchases, but the currency’s recent gains suggest that risk may be overstated.

Final Thoughts

The naira’s appreciation to N1,362 per dollar marks a turning point after years of depreciation pressure. With foreign reserves above $52 billion, oil prices near $100, and FX reforms bearing fruit, the currency has room to hold these levels. UK investors exposed to Nigeria should monitor crude oil prices and geopolitical risks in the Middle East, which remain the biggest wildcards for naira stability.

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