By Ayomide Otitoju
The Nigerian naira has strengthened to a record high of about ₦1,400 to the US dollar at the official market, extending its appreciation streak during midweek trading on the Nigerian Foreign Exchange Market (NFEM).
Data released by the Central Bank of Nigeria (CBN) showed that the naira appreciated by 1.26 per cent on Tuesday, closing at ₦1,401.22 per dollar, a gain of ₦17.73 from the ₦1,418.95 recorded on Monday. The local currency had already posted strong gains in the previous session, settling around ₦1,401.20 per dollar, its strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS).
Market data indicate that the naira has appreciated steadily in recent sessions, recording daily gains ranging between 0.1 per cent and 0.36 per cent. In the parallel market, Bureau De Change (BDC) operators in Lagos quoted the dollar between ₦1,475 and ₦1,490, with an average buying rate of ₦1,480 and selling rate of ₦1,490 as of January 27.
Analysts attribute the improved performance at the parallel market to enhanced foreign exchange liquidity and additional regulatory reforms implemented by the CBN. The naira’s recent gains reflect continued momentum into early 2026, building on its strong performance in 2025, when it recorded a decade-high appreciation of between 7 per cent and 9 per cent against the US dollar.
Market watchers expect the currency to remain relatively stable in the medium term. Several projections indicate that the naira is likely to trade within the ₦1,400 to ₦1,500 range per dollar this year, supported by improved FX inflows and sustained macroeconomic reforms.
The Nigerian Economic Summit Group (NESG) has projected that the naira will trade around ₦1,480 to the dollar in 2026. The group also expects Nigeria’s external reserves to rise steadily to about $52 billion over the same period, driven by the consolidation of recent reforms and ongoing stabilisation efforts.
