By Adedapo Adesanya

The Naira appreciated against the United States Dollar by N8.46 or 0.62 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, June 1, to trade at N1,366.79/$1 compared to the previous rate of N1,375.25/$1.

Also, the local currency further gained N15.34 against the Pound Sterling in the official market during the session to settle at N1,833.28/£1 versus last Friday’s value of N1,848.62/£1, and improved against the Euro by N14.36 to sell for N1,587.12/€1, in contrast to the preceding session’s N1,601.48/€1.

At the GTBank FX bench, the Nigerian Naira chalked up N1 against the Dollar during the session to quote at N1,378/$1 compared with last Friday’s N1,379/$1, but at the black market, it maintained stability at N1,380/$1.

Nigeria’s gross external reserves settled at $49.58 billion at the end of May, a sharp rebound from the previous downtrend, driven by foreign debt service and FX intervention in the official window.

The improvement in reserve levels was likely supported by increased foreign exchange inflows, particularly from crude oil export proceeds, amid sustained strength in global oil prices.

With the stellar performance witnessed in the first half of 2026, there are expectations that the Central Bank of Nigeria (CBN) will continue to inject forex into the official market, while elevated oil prices in the global commodity market will buoy the country’s FX reserves.

As for the cryptocurrency market, prices dipped after Strategy (MSTR), the largest publicly traded holder of Bitcoin (BTC), sold some of its holdings for the first time in four years. BTC slipped 3.6 per cent to a session low of $71,014.37.

Increased risk also came as Iran reportedly halted talks with the US in protest over Israel, which has continued incursions into Lebanon. The news sent crude oil prices surging by more than $5 per barrel and US stock index futures from modest gains to modest losses.

Ripple (XRP) slumped by 2.7 per cent to $1.29, Binance Coin (BNB) declined by 2.4 per cent to $690.41, Cardano (ADA) dipped by 2.0 per cent to $0.2291, TRON (TRX) dropped by 1.8 per cent to $0.3437, Solana (SOL) lost 1.5 per cent to trade at $80.61, and Ethereum (ETH) depreciated by 0.8 per cent to $1,991.03.

But Dogecoin (DOGE) marginally grew by 0.1 per cent to $0.0998, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.

By Adedapo Adesanya

Oil prices were up by more than 5 per cent on Monday after Iran reportedly halted indirect negotiations with the United States, stoking fears of a renewed escalation of the tension that has gripped the markets.

Brent crude futures ​soared by $4.80 or 5.2 per cent to $95.92 a barrel, while the US West Texas Intermediate (WTI) crude futures rose $5.46 or 6.2 per cent to $92.82 a barrel.

According to a report from Iran’s state-affiliated Tasnim news agency, Iranian negotiators will immediately stop exchanging messages with the US through intermediaries. The dramatic pivot is reportedly a direct retaliation for ongoing ceasefire violations, specifically homing in on Israel’s military operations against the Iran-backed militia Hezbollah in Lebanon.

Plans are also being made for Iranian forces and their allies to completely block the Strait of Hormuz and take action elsewhere, including another key shipping route.

However, US President Donald Trump shrugged off the suspension of indirect talks with Iran in an interview with ⁠CNBC on Monday, saying he did not care if they were over.

Iran and the US have traded strikes in recent days, and Israel ordered troops to move further into Lebanon in its battle with the Tehran-backed Hezbollah militant group.

The Iranian government said the delay in the diplomatic process to end the war can be explained by a lack of trust as well as the Trump administration’s contradictory positions and Israel’s attacks on Lebanon.

The US has reviewed the draft agreement with advisers before sending it back for changes, with discussions expected to continue for at least another week. The latest proposal reportedly includes a 60-day cessation of hostilities, provisions to reopen the Strait of Hormuz, and a framework for future nuclear negotiations.

However, major sticking points remain, including the fate of Iran’s highly enriched uranium stockpile, the scope of sanctions relief, and the guarantees that Iran is demanding before signing a final agreement.

Alongside ​oil supply concerns, economic data from China over the ​weekend showed that stalling factory activity ⁠has added to fears the world’s second-largest economy is losing momentum.

Reuters also reported that Saudi Arabia is likely to cut its official selling prices for crude oil to Asia in July for a second consecutive month.

By Aduragbemi Omiyale

A new report by Stanbic IBTC Bank Nigeria has revealed that in May 2026, growth momentum strengthened in the Nigerian private sector, with the Purchasing Managers’ Index (PMI) rising to an impressive 54.1 points from 52.4 points in April.

It was disclosed that output and new orders increased in the month under review, with firms ramping up their purchasing accordingly, though expansions in employment remained muted.

On the price front, higher fuel costs continued to cause sharp increases in input costs and output prices, but rates of inflation softened from April.

The rise in headline PMI signalled a solid monthly improvement in business conditions and one that was the most pronounced since August 2025. The health of the private sector has now strengthened in four consecutive months.

Central to the solid improvement in business conditions were marked and accelerated expansions in both output and new orders during May. Rates of growth hit seven- and nine-month highs respectively. Anecdotal evidence pointed to improving customer demand and the launch of new products.

Output growth was recorded across all four broad sectors covered by the survey. Improving demand, and the prospect of further growth in the months ahead, led companies to expand their purchasing activity and inventories in May.

Here too, rates of expansion quickened from April and were sharp. Efforts to secure inputs were helped by an improvement in vendor performance, as prompt payments, goods arrangements with suppliers and better road conditions helped to speed up deliveries.

Employment continued to rise only slightly midway through the second quarter, although sustained job creation has now been recorded in each month for a year. Meanwhile, backlogs of work increased for the fourth successive month amid customer payment delays, material shortages and power failures.

“Private sector activity in Nigeria improved to its best level in nine months, with the headline PMI rising to an impressive 54.1 points in May from 52.4 points in April.

“This impressive business condition was primarily due to accelerated expansion in both output (56.6 vs April: 53.4) and new orders (57.0 vs May: 54.6) as evidence pointed to improving customer demand and the launch of new products. Input prices maintained an uptrend, but the pace of increase eased for the second consecutive month.

“This is also reflected in higher output prices with the steepest increase seen in the manufacturing and agriculture sectors,” the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, commented.

Last month, the National Bureau of Statistics (NBS) disclosed that the Nigerian economy grew by 3.89 per cent year-on-year in the first quarter of 2026.