The naira on Tuesday recovered from Monday’s losses as the foreign exchange (FX) market shrugged off the impact of sentiments from remarks made by U.S. President Donald Trump on Nigeria.

Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated to N1,433.65 per dollar during intra-day trading, gaining 0.2 percent (N2.69) compared to N1,436.34 quoted the previous day at the Nigerian Foreign Exchange Market (NFEM).

An investment banker who spoke with BusinessDay said the market had calmed as initial fears over the possible implications of Trump’s remarks faded.

“The market is stable today because traders now believe Trump’s comments are unlikely to translate into any immediate action that would affect Nigeria’s economy or its FX inflows,” the banker said.

The local currency maintained relative stability in the unofficial foreign exchange market, commonly known as the parallel or black market despite Trump’s weekend threat of military action against Nigeria. Traders in major cities reported that the naira traded at similar levels to Monday, showing no significant volatility despite earlier external pressure.

Market checks across Lagos and Abuja confirmed that the dollar was sold at an average rate of N1,440 on Tuesday, the same as Monday’s rate. In some parts of Abuja, the naira even strengthened slightly, exchanging at N1,450 to the dollar compared to N1,460 quoted the previous day in the black market.

Currency dealers attributed the stability to moderate dollar demand and improved liquidity from informal sources, which helped cushion potential pressure arising from Trump’s comments. Nigeria’s external reserves, which provide the Central Bank with the capacity to support the naira, have also remained steady growth, rising to $43.25 billion as of November 3, 2025, according to CBN data.

Trump had, in a post on Truth Social on Saturday, claimed he had instructed the Pentagon “to prepare for possible action” and threatened to cut off aid to Nigeria, an OPEC member and Africa’s most populous nation. His comments sparked concerns about possible geopolitical and economic repercussions, including risks to investor sentiment and foreign exchange inflows. (BusinessDay)