Naira Stabilises at N1,808 Per Pound as Foreign Exchange Market Steadies
The naira maintained steady ground against the British pound, with the NFEM market rate holding at N1,808.3 per pound. The currency's resilience signals relative stability in the foreign exchange market despite broader economic pressures.
The naira traded at N1,808.3 per British pound on the Nigerian Foreign Exchange Market, reflecting continued stability in the local currency's value against major international benchmarks.
This rate represents a holding pattern for the naira in its GBP pair, a significant marker given the currency's volatility over the past twelve months. The Central Bank of Nigeria's ongoing foreign exchange interventions and tighter monetary policy have supported the naira's resilience, even as external pressures from global oil price fluctuations and capital outflows persist. Traders on the NFEM reported steady demand for both naira and pound sterling, with corporate entities and international businesses conducting routine cross-border transactions at these levels.
The stability carries immediate implications for Nigerian importers and businesses with pound-denominated liabilities. Companies that import goods from the United Kingdom, including machinery, spare parts, and luxury items, face relatively predictable conversion costs at current rates. A naira holding firm at N1,808 per pound means these businesses can budget with greater certainty for their foreign exchange obligations. However, exporters of raw materials and agricultural products denominated in pounds see their naira revenues remain compressed, reinforcing the structural challenges facing Nigeria's non-oil export sector.
For everyday Nigerians, the pound's trading rate influences the cost of goods and services linked to British imports. Educational expenses for students seeking admission to British universities, medical procedures abroad, and holiday travel to the United Kingdom all hinge on prevailing GBP rates. At N1,808 per pound, the cost of these services remains elevated compared to historical pre-2020 levels when the naira traded around N365 per pound, underscoring how far the currency has depreciated over the past four years.
Market analysts attribute the naira's current steadiness to the CBN's disciplined approach to foreign exchange allocation and its commitment to maintaining adequate reserve buffers. The apex bank has restricted speculative trading and prioritised essential imports and critical business needs. This regime, while supporting stability, has created parallel market rates that diverge significantly from official rates, with some unofficial channels quoting substantially weaker levels. The NFEM rate of N1,808 reflects the official market, where liquidity remains relatively constrained compared to the broader forex ecosystem.
The pound sterling's strength globally has also bolstered its value against the naira in recent weeks. The Bank of England's higher interest rate differentials compared to the CBN have attracted international investors to pound-denominated assets, creating sustained demand for the currency. Geopolitical tensions and uncertainty in emerging markets have historically pushed investors toward safe-haven currencies like sterling, further supporting its resilience against developing-market currencies including the naira.
Looking forward, currency analysts expect the naira to maintain its current trading range against the pound provided crude oil prices remain above USD 80 per barrel and the CBN sustains its disciplined policy stance. Any significant decline in oil revenues or shift in capital flow dynamics could test the naira's current strength. The spread between official and parallel market rates remains a concern for policymakers, signalling that underlying demand for dollars and other major currencies exceeds official supply at current rates. This persistent gap indicates that the naira's stability masks underlying structural forex scarcity that continues to constrain broader economic activity.