Naira Strengthens as Dollar Demand Drops 35% in April

In April 2026, demand for foreign exchange by end-users in Nigeria decreased by 35.23% to $3.42 billion, according to data from the Central Bank of Nigeria. This decline eased pressure on the dollar market, allowing the naira to record modest gains.

The monthly average exchange rate improved by 1.38%, rising to N1,361.22 per dollar from N1,379.98 in March. By the end of April, the naira closed at N1,374.94 per dollar, compared to N1,386.72 at the end of March.

Visible imports accounted for 41.92% of total FX utilization, with industrial activities being the largest users. Despite lower demand and turnover, Nigeria's net foreign exchange position strengthened, with net inflows rising to $5.85 billion from $4.16 billion in March.

Total FX inflows fell to $8.71 billion, while outflows dropped significantly to $2.86 billion. The Central Bank reported that external reserves remained stable at $48.32 billion, providing about 10 months of import cover.