The Nigerian naira remained relatively resilient on Tuesday, trading at approximately N2,177 per British pound in the country’s parallel market, as it continued a month-long consolidation phase amid global pressure on the British sterling.
According to market analysts, the naira has consistently hovered between N2,100 and N2,180/£ throughout April, even as demand for the pound surged globally following positive macroeconomic forecasts and a weaker U.S. dollar.
The naira’s stability comes at a critical time for Nigeria’s foreign exchange market, as foreign investor confidence and remittance inflows remain key to its strength. Data from the Central Bank of Nigeria (CBN) show the UK contributes to 50% of diaspora remittances, which are projected to rise to $21 billion in 2024. The UK is also Nigeria’s second-largest trading partner.
Global financial giant UBS Group AG recently raised its outlook for the GBP/USD pair, forecasting it could hit 1.39 by March 2026. The bank cited increased liquidity, favorable carry trade conditions, and the UK’s moderate stance in international trade disputes as reasons behind the pound’s rally.
Despite the strengthening of the pound, the naira’s performance against the sterling contrasts with its official exchange rate losses to the U.S. dollar, where it recently closed at N1,596/$1. This disparity highlights the ongoing strain on Nigeria’s FX reserves and underscores the need for policy coordination between monetary authorities and fiscal stakeholders.
The sustained demand for British currency is also fueled by Nigeria’s youth migration trend, with the UK remaining a top destination due to historic ties, proximity, and language commonality.
Meanwhile, the U.S. dollar struggled to regain footing in global markets amid continued uncertainty in Sino-American trade relations. This shift has benefited traditional safe-haven currencies like the yen and Swiss franc, while the euro rose 0.15% to $1.14, marking its strongest monthly performance in nearly 15 years.
As investors brace for key U.S. economic data releases, including job figures and GDP growth, Nigeria’s forex outlook remains sensitive to global currency dynamics and domestic reforms aimed at boosting FX liquidity.
The naira’s current resilience against the pound, though promising, may face further tests if global financial volatility deepens or local macroeconomic pressures intensify.
