The Nigerian naira has recorded its first major appreciation against the US dollar in months, following a boost in the country’s foreign reserves. According to recent data, Nigeria’s reserves have climbed to $46.7 billion, giving the currency some much-needed support in the foreign exchange market. Analysts say this improvement signals a positive shift in market confidence and may reduce pressure on the naira in the short term.

Market experts explained that the rise in reserves strengthens the Central Bank of Nigeria’s ability to defend the naira when necessary. With increased liquidity and stronger backing, the CBN can intervene more effectively, helping to stabilise the exchange rate. Some traders also noted a decline in panic buying of dollars, which contributed to the naira’s improved performance.

The appreciation has sparked cautious optimism among businesses and consumers who have struggled with price increases caused by earlier currency depreciation. A stronger naira may lead to reduced import costs over time, easing inflationary pressure. However, economists warn that sustained growth will depend on consistent reserves, improved exports, and reduced reliance on imported goods.

Despite this progress, analysts urge the government to keep supporting long-term economic reforms. Strengthening local production, boosting investor confidence, and maintaining transparent FX policies are essential for lasting currency stability. They emphasize that one positive movement is encouraging, but steady improvement will require continuous effort.