Naira Holds Steady at N1,373 as T+1 Launch Boosts Confidence

LAGOS — The Nigerian naira maintained steady momentum on Monday, June 1, as markets reopened after the extended holiday break. Vanguard data showed the naira trading at approximately N1,373 per dollar in the official Nigerian Foreign Exchange Market. The parallel market rate remained between N1,385 and N1,395 in Lagos.

Currency analysts said the T+1 launch on the same day as market reopening created positive sentiment that supported the naira. The expectation of increased foreign portfolio investment following the improved settlement system reduces pressure on the currency by improving dollar inflows.

The CBN maintained its market surveillance through the holiday break and resumed active oversight from Monday morning. Governor Cardoso said the bank remains committed to maintaining a stable and transparent foreign exchange market. He said the $50 billion reserve buffer provides strong capacity for intervention if needed.

Macro Fundamentals Supportive

Several macro factors are supporting the naira’s stability heading into June. Oil production remains around 1.66 million barrels per day. The Dangote Refinery continues to reduce Nigeria’s net fuel import bill. Diaspora remittances have been growing. And the S&P credit rating upgrade is attracting fresh international investor interest.

The UN climate report warning of record global temperatures by 2031 adds long-term pressure on Nigeria’s oil-dependent economy but has limited short-term impact on the naira. The more immediate risk remains election-year spending pressure as 2027 approaches and political actors begin releasing campaign resources.

Ordinary Nigerians said they have yet to feel the naira’s stability in their daily shopping. Food prices remain high. Transport costs are elevated. However, economists said the macro stabilisation taking place now is the necessary foundation for consumer-level relief that should follow over the next 12 to 18 months if current trends hold.