Naira Gains 1.42% In April 2026 As CBN Ramps Up OMO Sales To ₦9.71 Trillion To Stabilise FX Market

by HEDNEWS on May 26, 2026

Naira Gains 1.42% in April 2026 as CBN Ramps Up OMO Sales to ₦9.71 Trillion to Stabilise FX Market The Naira appreciated by 1.42 per cent in April 2026, supported by increased liquidity management measures from the Central Bank of Nigeria CBN, which intensified its Open Market Operations OMO sales to about ₦9.71 trillion in a bid to stabilise the foreign exchange FX market and contain speculative pressure. Market data showed that the local currency strengthened across official trading windows during the month, reflecting improved investor participation, tighter liquidity conditions, and sustained monetary policy interventions aimed at anchoring inflation expectations and FX volatility.The Central Bank of Nigeria significantly expanded its use of Open Market Operations OMO instruments, mopping up excess liquidity from the financial system through large-scale issuance of short-term securities.

The OMO programme, which reached ₦9.71 trillion in total sales activity, was designed to

Reduce excess naira liquidity in circulation
Attract foreign portfolio inflows
Support exchange rate stability
Strengthen monetary policy transmission

Analysts noted that the scale of OMO issuance reflected the CBN’s renewed focus on orthodox monetary tightening as inflationary pressures remained elevated in the domestic economy.The currency’s performance in April was supported by improved inflows into fixed-income securities and foreign exchange market participation by offshore investors responding to attractive yields on OMO bills.

Key market movements included

Appreciation of the naira by 1.42% during April 2026
Improved liquidity in the official FX market
Reduced speculative demand pressure
Narrower volatility across trading sessions

The strengthening trend was also linked to sustained CBN interventions in both the official and parallel FX markets, alongside periodic injections aimed at smoothing volatility. Financial market analysts attributed part of the naira’s resilience to renewed interest from foreign portfolio investors FPIs, who were attracted by high yields on OMO instruments and improved confidence in monetary policy direction. OMO auctions during the period recorded strong subscription levels, reinforcing Nigeria’s position as an attractive short-term investment destination despite macroeconomic risks such as inflation and external reserve pressures. Despite the naira’s gains, Nigeria’s macroeconomic environment remained challenged by:

Persistent inflationary pressures
High import dependency
External reserve volatility
Energy and structural bottlenecks

Economists cautioned that while liquidity tightening supports short term FX stability, sustainable currency strength would depend on productivity growth, oil revenue performance, and broader fiscal reforms. Market expectations suggest that the naira’s near-term trajectory will continue to be shaped by

Continued CBN OMO interventions
Foreign investor appetite for naira assets
Oil export earnings and FX inflows
Inflation control measures

Analysts maintain that the aggressive liquidity management stance has improved short-term FX stability, but long-term sustainability will require coordinated fiscal and monetary reforms.