Dollar demand drops as naira gains strength
Demand for foreign exchange in Nigeria fell sharply, giving the naira a boost in value. Data from the Central Bank of Nigeria showed significant changes in both the demand and supply of dollars. Various sectors contributed differently to foreign exchange utilisation, with industrial activities leading among visible imports. The country's external reserves remained stable, providing strong import cover.
TLDR
- Demand for foreign exchange by end-users fell by 35.23 per cent to $3.42bn in April 2026.
- The monthly average exchange rate improved 1.38 per cent to N1,361.22 per dollar in April from N1,379.98 in March.
- Net FX inflows rose to $5.85bn in April from $4.16bn in March, driven by a sharper decline in outflows.
- The Central Bank of Nigeria reported external reserves at $48.32bn at the end of April, compared with $48.35bn in March.
- The reserves provided about 10 months of import cover, well above the international benchmark.
