The naira has stabilised around ₦1,398 per dollar on the official market this week, supported by a surge in portfolio investment inflows that have reached their highest level in six months as international investors respond positively to Nigeria's improving economic indicators.

Data from the CBN shows net portfolio inflows of $2.1 billion in May, reversing outflows of $340 million recorded in March. The inflows are concentrated in short-dated government securities, where yields remain attractive relative to comparable instruments in emerging market peers.

Structural factors

Currency analysts say the stability reflects genuine improvements in Nigeria's external position rather than central bank intervention. Dangote Refinery's growing domestic fuel output has materially reduced the import bill, while CBN foreign exchange reserves have climbed to $36.8 billion from $31.2 billion in January.