The naira strengthened further on Wednesday as the Central Bank of Nigeria released new figures showing another improvement in the country’s foreign exchange performance. The latest movement reflects ongoing efforts by the bank to restore stability and narrow the gap between official and parallel market rates.

Naira Appreciates Across Major Currencies

According to data published by the CBN, the naira closed at ₦1,442.92 per dollar, an improvement from ₦1,446.31 recorded on Tuesday, November 25. The currency also picked up against the pound sterling and the euro in the official market, continuing the upward trend that began earlier in the month.

Market watchers say these gains are coming at a time when confidence in the FX system has been gradually returning. According to reports, increased inflows and a more transparent trading environment have contributed to the stronger performance.

CBN Highlights Progress in Narrowing FX Market Spread

The Central Bank expressed satisfaction with the shrinking difference between official and parallel market rates. This gap, which once fueled uncertainty and encouraged speculative buying, has fallen significantly. Officials say the tighter spread is a sign that ongoing reforms are beginning to produce measurable results.

Speaking on the development, a senior financial analyst in Lagos said the improvement should not be underestimated. He explained that a narrower spread helps discourage arbitrage and creates a clearer price discovery system, both of which are necessary for a healthier FX market.

Experts Link Gains to Better Liquidity and Policy Discipline

Economists interviewed by local media outlets noted that the recent appreciation appears to be supported by stronger FX liquidity. Higher inflows from oil revenue, remittances and foreign investment have played a role, while policy discipline within the CBN has helped reduce volatility.

However, analysts also cautioned that sustainability remains a key concern. According to financial experts quoted by Punch Newspapers, seasonal demand pressures, global oil price fluctuations and external economic risks could still influence the naira’s direction in the coming weeks.

Broader Economic Impact

A stronger naira typically eases the cost of imported goods, which may help moderate inflation if the trend continues. Businesses that rely on foreign inputs may also see some relief after months of elevated operating costs. Meanwhile, households receiving remittances could benefit from a more stable exchange environment.

Despite these positives, trade experts warn that an overly strong currency might make local exports less competitive. They argue that Nigeria will need to balance FX stability with measures that support domestic production and non-oil export growth.

What Comes Next

The CBN says it will continue to focus on improving transparency, strengthening liquidity and supporting market confidence. The bank maintains that its long-term goal is to build a more predictable exchange system that reflects true market dynamics while protecting the economy from sharp disruptions.

For now, the latest figures indicate that the naira is gaining ground, and stakeholders will be watching closely to see whether the trend can be sustained