The Naira strengthened to 150.30 to the dollar on the interbank market on Wednesday, from 150.41 the previous day, due to weaker-than-expected demand for the greenback at the official window, traders said.The central bank sold $190 million at 148.60 at its bi-weekly forex auction on Wednesday, less than the $200 million offered and compared to $200 million sold at 148.67 on Monday.
Dealers said weaker demand and the inflow of an unspecified amount of dollars from the Nigerian Liquefied Natural Gas (NLNG) company helped boost the naira.
"Dollar inflows from month-end energy companies' sales have helped to eased demand pressure at both the interbank market and central bank's forex auction and provide support for the local currency," one dealer said.
Oil companies operating in Africa's top energy-producing nation regularly sell dollars toward the end of each month to meet their local funding obligations.
Traders said the Naira could appreciate slightly before the end of the week if more energy firms sell dollars as expected.
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