Naira Plunges to Record Low—5 Urgent Money Moves Nigerians Need Today

Lagos, Nigeria – The Nigerian naira extended a two-week rebound at both the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window and the informal street market this week, buoyed by higher oil receipts, fresh diaspora inflows and the Central Bank of Nigeria’s (CBN) tight monetary stance. Official rate slips under ₦1,370/$ CBN data published late Friday put the weighted-average NAFEM rate at ₦1,367.76 per US dollar, its strongest level since mid-May. The currency has appreciated roughly 1.3 percent in the past five trading sessions. Parallel market narrows the gap Street traders in Lagos, Abuja and Port Harcourt quoted the dollar between ₦1,545 and ₦1,555 on Wednesday, about ₦100 stronger than two weeks ago when it touched a year-to-date high of ₦1,647. The 12 percent spread between unofficial and official windows is now the tightest since February. Why the rebound? • Restrictive policy: The CBN held its benchmark rate at 26.5 percent after its July Monetary Policy Committee meeting, pledging to “do whatever it takes” to tame inflation and stabilise the naira. Governor Olayemi Cardoso said the bank sees headline inflation peaking this quarter and projects 4.49 percent GDP growth for 2026. • Oil earnings: Brent crude has hovered above $88 per barrel for most of July, lifting Nigeria’s export proceeds and boosting FX supply. • Diaspora remittances: Money-transfer companies report a 9 percent month-on-month surge in inflows following CBN’s decision to clear a backlog of verified demand at the official window, reducing reliance on street dealers. • Bureau-de-change restart: Fresh guidelines allowing licensed BDCs to buy dollars from banks at NAFEM plus 1 percent helped cool retail demand. Analysts interviewed by the BBC say this could push the street rate toward ₦1,270/$ if fully implemented. Still a long road to stability Despite the rally, the naira remains 40 percent weaker than a year ago when the currency was unified. Inflation sits at 32.2 percent, eroding purchasing power and limiting the impact of recent gains. “Until structural FX supply improves through higher non-oil exports and deeper reserves, sentiment will swing on every policy headline,” said Ngozi Okonkwo, FX research lead at a Lagos-based investment bank. What to watch next week 1. July inflation print (due 17 August) – A softer number could reinforce bets on a stronger naira. 2. Sovereign Eurobond coupon payments – Timely settlement tends to calm offshore investors. 3. CBN’s planned $500 million OMO auction – Success will signal foreign appetite for naira assets. Bottom line For now, tighter liquidity, higher crude prices and renewed policy credibility are working in the naira’s favor. Traders will be eyeing whether the currency can decisively break the ₦1,350/$ technical level at NAFEM and pull the street rate below ₦1,500/$ in the coming days.