The Nigerian naira experienced a mixed performance on Tuesday, April 28, 2026, gaining slightly in the parallel market while losing ground in the official foreign exchange window. This divergence led to a significant narrowing of the gap between the two markets.
Parallel Market Gains
In the parallel market, the naira appreciated to N1,390 per US dollar, an improvement from the N1,392 per dollar rate recorded on Monday, according to Vanguard reports. This marginal gain reflects continued demand for the local currency among street traders.
Official Rate Depreciates
Conversely, at the Nigerian Foreign Exchange Market (NFEM), data released by the Central Bank of Nigeria (CBN) showed that the indicative exchange rate rose to N1,383 per dollar from N1,369 per dollar on Monday. This represents a depreciation of N14 for the naira in the official window.
Spread Narrowing
The contrasting movements caused the spread between the parallel market and the official window to shrink dramatically. The gap reduced to just N7 per dollar, down from N23 per dollar recorded a day earlier. This narrowing suggests increased convergence between the two exchange rate channels.
Activity in the interbank foreign exchange market saw a notable uptick, with turnover rising by 28.8% to $98.8 million, up from $76.7 million previously. This increase indicates improved liquidity in the financial market, though uncertainty persists.
Naira Named Africa's Best Currency
Despite recent volatility, the Nigerian currency has been recognized as Africa's best-performing currency in 2026. A report by United Capital revealed that the naira appreciated 6.7% against the dollar year-to-date as of April 24, 2026. This performance stands in stark contrast to other major African currencies, which experienced depreciation: the Kenyan shilling fell 0.27%, the Angolan kwanza dropped 0.009%, the South African rand declined 0.34%, and the Ghanaian cedi weakened by 5.30% during the same period.
Ayodele Akinwunmi, Chief Economist at United Capital, attributed the naira's relative strength to policy reforms, improved foreign exchange supply, and robust external reserves. These factors have enabled the CBN to support the naira and reduce volatility in the market.
External Reserves Update
The CBN also provided an update on external reserves, which have declined to $49.57 billion from a recent peak of $50.02 billion recorded on March 11, 2026. Data from the central bank shows that reserves have fallen for seven consecutive sessions. Provisional balance of payments figures indicate that the surplus dropped to $14.04 billion in 2025 from $19.03 billion in 2024, though it remains above the $6.42 billion recorded in 2023.
The services deficit widened to $14.58 billion from $13.36 billion, driven by higher payments for transport, travel, insurance, and government services. Net outflows in the primary income account surged by 60.88% to $9.09 billion, reflecting increased dividend and interest payments to foreign investors.
