The Nigerian naira recorded a rare appreciation in April 2026, breaking a three-year streak of declines during the month. Data from the Central Bank of Nigeria (CBN) shows the naira closed April at N1,374 to the dollar, improving from N1,387 at the end of March. This marks the first time since 2023 that the currency has strengthened in April, a period historically associated with pressure on the naira.
Stability Replaces Volatility
Unlike March, when the naira experienced sharp fluctuations and fell to around N1,425 before recovering, April was relatively calm. The currency traded within a narrow range of approximately N1,340 to N1,389 per dollar, reaching its strongest level of N1,341 on April 16. This stability was supported by increased dollar supply and reduced demand pressures in the market.
Factors Driving the Recovery
Compared to April 2025, when the naira stood at N1,602 to the dollar, the current rate reflects a strong year-on-year improvement. Analysts attribute this progress to tighter monetary policies by the CBN, higher foreign exchange inflows from oil revenues and diaspora remittances, and reduced speculative demand for dollars. Improved liquidity and disciplined policy measures are helping the naira move toward a more stable and predictable path.
Financial expert Olumide Adesina told Legit.ng that the naira's strengthening is mainly due to improved foreign exchange liquidity and firmer policy direction. He stated: "Sustained tightening by the Central Bank of Nigeria has reduced excess naira chasing dollars, while higher inflows from oil exports and diaspora remittances are boosting supply. Clearer FX market rules and reduced speculative trading have helped stabilise expectations. The narrowing gap between official and parallel market rates is also restoring confidence among investors."
Dangote's Optimistic Forecast
Meanwhile, business mogul Aliko Dangote has expressed optimism about the naira's future, predicting it could strengthen to around N1,100 against the dollar before the end of 2026. He based this outlook on recent economic reforms introduced by the government, noting that these changes are beginning to have a positive impact, especially for manufacturers. Although the naira currently trades around N1,300 to the dollar, Dangote believes the improving policy environment and ongoing reforms will continue to support the currency's recovery.
