The Nigerian naira continued to strengthen against the euro last week, with the latest data from the Central Bank of Nigeria (CBN) showing the currency closing at N1,576/€1, compared with N1,573/€1 in the previous week.
The latest exchange rate marks a significant improvement from the N1,774/€1 recorded in January 2026, with the naira now trading around a multi-month low of N1,555/€1 against the euro.
The EUR/NGN exchange rate has remained relatively stable since the beginning of July, trading within a narrow range of approximately N1,561/€1 to N1,576.70/€1.
Market analysts attribute the reduced volatility partly to increased intervention and liquidity injections by the CBN, which have helped support the foreign exchange market and limit sharp movements in official exchange rates.
CBN Introduces Forex Reforms
The CBN has recently implemented several structural, regulatory and monetary policy measures aimed at improving market liquidity, reducing foreign exchange volatility and strengthening the naira.
Under the new measures, the upfront payment requirement for imports of physical goods was increased from 15% to 30% of Free on Board (FOB) value. The adjustment is expected to simplify import transactions and ease working-capital pressures for businesses.
The CBN also removed the requirement for self-funded domiciliary account holders to complete Form A. This allows funds belonging to self-funded customers to be transferred directly to their intended destinations without going through the previous complex procedures.
In addition, the Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) framework has been adjusted, with 25% of the approved foreign exchange allowance payable in physical cash and the remaining 75% provided electronically.
For international education payments, the CBN has also increased the Personal/Educational Allowance to $25,000 per semester, providing greater access to foreign exchange for eligible school-fee payments.
Euro Weakness Also Supports the Naira
The euro’s recent performance has also contributed to the naira’s relative strength. Expectations of monetary easing by the European Central Bank (ECB) have limited broad-based gains in the euro, allowing emerging-market currencies backed by relatively high domestic yields to perform better.
Despite Nigeria’s persistently high inflation, elevated interest rates have continued to provide some support for the naira in the short term.
Overall, the combination of CBN interventions, increased foreign-exchange liquidity, regulatory reforms and relatively weak euro momentum has helped keep the naira below the N1,580/€1 level and contributed to greater stability in the official foreign exchange market.
