June 1 (THEWILL) — The naira recorded a slight depreciation against the U.S. dollar in May 2026, closing the month at ₦1,372/$ at the official foreign exchange market, according to data from the Central Bank of Nigeria (CBN).
The closing rate represents a 0.36 percent decline from ₦1,367/$ recorded at the end of April, indicating a modest reversal after the currency’s gains in the previous month.
Despite the month-on-month weakness, the naira remained significantly stronger than its position a year earlier. Compared with the ₦1,585.50/$ exchange rate recorded at the end of May 2025, the local currency appreciated by ₦213.50 over the past 12 months, representing a 13.5 percent year-on-year gain.
CBN data showed the naira opened in May at ₦1,367.50/$ and strengthened to ₦1,358.01/$ on May 7, its strongest level during the month. However, the currency later lost some of those gains and traded largely within the ₦1,372/$–₦1,375/$ range before settling at ₦1,372/$ on May 29. Trading activities were suspended on May 27 and May 28 due to the Eid al-Kabir public holidays.
The relatively narrow trading band suggests that the foreign exchange market remained more stable than in previous periods, even as demand pressures and global economic uncertainties persisted.
May’s performance followed a stronger outing in April, when the naira appreciated from ₦1,387/$ at the end of March to ₦1,374/$ at month-end. While the currency was unable to sustain that upward momentum through May, it preserved most of the gains recorded earlier in the year.
Market participants continue to attribute the relative stability in the foreign exchange market to improved liquidity, ongoing policy reforms, and a gradual recovery in investor confidence. The performance also coincided with an improvement in Nigeria’s external reserves, which provided additional support for the naira during the month.
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.
