Naira Strengthens Against Pound, Closes at N1,819/£1

By Benson Daniel

The Nigerian naira strengthened against the British pound, with the pound closing at N1,819 on Tuesday, improving from N1,830 recorded at the beginning of the week.

The latest movement reflects continued relative strength in the local currency, supported by improved foreign exchange liquidity and stronger dollar supply in Nigeria’s official market.

The N1,819 per pound closing level places the naira among the stronger performers against major currencies in the domestic foreign exchange market in recent trading sessions.

Market data showed that the pound had traded within a range of approximately N1,805 to N1,875 over the preceding 30 trading days, highlighting the volatility that has characterised the naira pound exchange rate in recent months.

The naira’s recent performance has been supported by improved liquidity in the Nigerian Foreign Exchange Market, where increased dollar inflows have helped ease pressure on the local currency.

The improvement in foreign exchange availability has also contributed to greater stability in the dollar naira exchange rate, with the official market trading around the N1,340 to N1,350 per dollar range at the time of the report.

Nigeria’s external reserves have also risen to about $52.2 billion, providing a stronger buffer for managing foreign exchange pressures and supporting confidence in the local currency.

The stronger naira has implications for businesses and individuals that conduct transactions involving the British pound, including importers, students, travellers and companies with obligations denominated in sterling.

A lower naira cost of acquiring pounds could reduce some foreign exchange expenses for these users, although rates available to retail customers may differ depending on the market and transaction channel.

The parallel foreign exchange market continues to record wider bid and ask spreads, meaning consumers and businesses purchasing pounds outside the official market may face rates different from the prevailing official or interbank levels.

Meanwhile, developments in the British economy are also influencing the pound’s performance internationally. UK inflation accelerated in July, with annual consumer price inflation rising to 2.9 per cent from 2.6 per cent in June, while monthly inflation stood at 0.3 per cent.

The movement in the pound against the naira therefore reflects both domestic factors affecting Nigeria’s currency and broader international developments influencing sterling.

For Nigeria, sustained foreign exchange inflows and stronger external reserves could help maintain stability if the trend continues. However, analysts are expected to continue monitoring demand for foreign currency, monetary policy decisions and global market conditions.

The latest closing rate represents another indication of the naira’s improved performance against major currencies, although exchange rates remain subject to changes in market liquidity, demand and international financial conditions.