The Nigerian Naira continued its steady upward trend in the official foreign exchange market on Thursday, June 6, closing at ₦1,553.11 per dollar, as reported by the Central Bank of Nigeria (CBN).
This marks an appreciation of ₦12.35 or 0.79 per cent compared to Wednesday’s closing rate of ₦1,565.46/$. It is the strongest performance by the local currency this week and reflects consistent gains seen over the past few trading sessions.
Throughout the week, the Naira strengthened progressively, opening Monday at ₦1,581.58/$, appreciating to ₦1,579.27/$ on Tuesday, and further to ₦1,565.46/$ on Wednesday, before Thursday’s stronger close. This trend builds on last week’s bullish close and represents a total gain of ₦28.47 within four trading days.
Analysts point to several contributing factors, including the Central Bank’s forex market reforms, increased foreign exchange inflows, and ongoing recapitalisation of Bureau De Change (BDC) operators, which officially commenced on June 3, 2025.
The recapitalisation directive, issued earlier by the CBN, is aimed at sanitising the retail forex space and ensuring stronger regulatory compliance. The move is expected to consolidate the number of licensed operators, reduce speculation, and bring stability to the parallel market—ultimately supporting the value of the Naira.
Currency watchers say the appreciation trend suggests increased confidence in monetary policy direction, and stronger foreign exchange supply management by the CBN.
A Lagos-based forex analyst noted, “We are seeing greater coordination between fiscal and monetary authorities. The recapitalisation of BDCs is not only restoring order in that segment but also signalling policy credibility. Investors and traders are responding accordingly.”
Market participants also observed that the CBN’s intervention mechanisms and improved access to FX for eligible transactions have reduced excessive pressure on the Naira.
Meanwhile, expectations remain high for continued improvement, especially as oil prices stay relatively firm, and remittance flows strengthen towards the Eid-el-Kabir holiday season, typically associated with increased diaspora transfers.
Despite the recent momentum, analysts caution that sustaining the Naira’s appreciation will depend on macroeconomic stability, supply-demand dynamics, and the CBN’s ability to manage reserves prudently.
The CBN has yet to issue an updated circular on the foreign exchange inflow figures or reserves, but market sentiment continues to reflect cautious optimism.
In the unofficial market (parallel market), although the rate is still slightly divergent, recent trends show a narrowing gap, suggesting improving transparency and convergence in exchange rate pricing.
With the BDC sector recapitalisation now in effect, and increased supervision of forex intermediaries, stakeholders anticipate that exchange rate volatility may reduce further, enhancing investor confidence and economic predictability.
As of now, the outlook for the Naira remains moderately positive, pending broader economic indicators and global financial conditions in the weeks ahead.
