Nigeria’s currency strengthened against the British pound in the foreign-exchange market, settling at about ₦1,850 per £1 in recent trading, reflecting relative stability in the naira’s performance against the UK currency.
NairametricsMarket data shows the naira closed at ₦1,850/£1 in the official foreign-exchange market, holding most of the gains it has recorded against the pound in recent weeks.
The level marks an important psychological threshold, as the local currency has now traded below ₦1,900 per pound, reinforcing positive sentiment among traders and currency market participants.
Analysts attribute the stability partly to growing demand for naira-denominated assets and improved liquidity in the Nigerian FX market. These factors have supported the local currency and helped narrow volatility across trading sessions.
The parallel market rate remained close to the official market, with the pound trading around ₦1,878/£1, leaving a spread of less than 2 percent between the two markets.
The near-alignment has been linked to increased access to foreign exchange for Bureau De Change operators, which has eased pressure from retail demand and reduced distortions between the official and unofficial FX markets.
External factors also played a role. The British pound has faced downward pressure in global markets, weakening against major currencies amid geopolitical tensions in the Middle East, rising energy costs, and stronger U.S. economic data that boosted the dollar.
These developments contributed to the pound’s relative decline, indirectly strengthening the naira in the GBP/NGN pair.
Currency analysts note that the Central Bank of Nigeria’s policy focus on exchange-rate stability rather than rapid appreciation continues to guide the market.
The naira’s value remains influenced by domestic factors such as oil output, fiscal policy direction, foreign-exchange inflows, and ongoing monetary reforms aimed at stabilising Nigeria’s financial system.
Source: Nairametrics
