Nigeria’s currency, the naira, has continued to strengthen against the United States dollar as the country’s foreign exchange reserves increased to about $45.57 billion. Analysts say the improvement reflects better inflows from crude oil sales, growing investor confidence, and tighter management of the foreign exchange market by the Central Bank of Nigeria.

Market watchers explain that the rising reserves give the CBN more capacity to support the naira by meeting legitimate dollar demand from importers, airlines, manufacturers and other businesses. This reduces pressure on the exchange rate and helps calm volatility in both the official and parallel markets.

Economists also link the naira’s recent gains to ongoing reforms in the financial and energy sectors, including improved oil production, higher export earnings and stronger remittance inflows from Nigerians abroad. These developments are helping to increase dollar supply and reduce the gap between demand and availability.

However, experts warn that sustaining the naira’s strength will depend on consistent policy implementation, security in oil-producing areas, and continued efforts to attract foreign investment. They say without structural reforms, the currency could face renewed pressure in the future.