May 22, (THEWILL) — The Nigerian naira recorded fresh gains against the British pound sterling in the foreign exchange market, strengthening to ₦1,840/£1 amid rising political and economic uncertainty in the United Kingdom.
Latest data from the Central Bank of Nigeria (CBN) showed the pound sterling trading around ₦1,840/£1 at the official market window, as the local currency continued its recovery from the lows recorded in April.
Market analysts attributed the naira’s recent resilience to improved liquidity management by the CBN and weakening sentiment surrounding the British economy. The pound came under pressure after renewed political tensions in the UK, including reports of internal disagreements within the ruling Labour Party and growing leadership concerns surrounding Prime Minister Keir Starmer.
Currency traders noted that the naira has largely traded within the ₦1,825/£1 to ₦1,950/£1 range in recent weeks, supported by periodic interventions and foreign exchange liquidity injections by the apex bank.
Analysts said the ₦1,750–₦1,800 band remains a key psychological support level for the naira. Further aggressive dollar injections by the CBN could push the local currency closer to those levels. On the upside, resistance for the pound is seen around ₦1,880–₦1,900, with any sustained break above ₦1,900 likely to trigger renewed pressure toward the ₦2,000 mark, especially in the parallel market.
The naira’s performance continues to depend heavily on foreign exchange inflows from crude oil earnings and portfolio investments. Whenever liquidity weakens in the Nigerian Autonomous Foreign Exchange Market (NAFEM), pressure typically shifts to the parallel market, increasing volatility.
Despite recent gains, analysts warned that Nigeria’s persistent inflationary pressures continue to weaken the naira’s real purchasing power. Structural reforms, including exchange rate harmonisation and subsidy removals, have also left the currency highly sensitive to changes in CBN policy.
Meanwhile, the British pound posted modest gains against the US dollar, trading near 1.3430 during Friday’s London session. However, uncertainty over the Bank of England’s policy direction and ongoing geopolitical tensions have continued to limit stronger bullish momentum for sterling.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
