This is a notable development, as the naira dipped below the N1,600/$1 level for the first time in nearly two weeks, pointing to a possible shift amid rising pressure from rising foreign demand.

Data from the Nigerian Foreign Exchange Market (NFEM) showed the local currency trading between N1,595/$1 and N1,600/$1, before settling at an average rate of N1,596.70/$1.

In the parallel market, however, the naira showed mixed performance. It maintained its previous rate of N1,630/$1 against the U.S. dollar for the third consecutive day. It weakened slightly against the British pound, falling to N2,160/£1 from N2,155/£1, but gained ground against the euro, appreciating to N1,810/€1 from N1,815/€1.

While the Nigerian currency’s appreciation against the dollar is a step in the right direction, its movement in the coming days will determine if this milestone represents a lasting turnaround or a temporary relief for the naira.