Naira Gains to ₦1,424.5/$ as 2026 Second Trading Week Closes Firmer
By SAMUEL MOBOLAJI
The naira ended the second trading week of 2026 on a stronger footing against the United States dollar, closing at ₦1,424.5/$ at the official foreign exchange market, supported by improved market stability, marginal reserve accretion and positive medium-term signals from the Central Bank of Nigeria.
Trading data from the Nigerian Foreign Exchange Market showed the local currency appreciating from ₦1,431/$ at the close of the previous week, marking a modest but steady week-on-week gain.
Compared with the same period last year, the performance also reflects a significant improvement, as the naira closed at ₦1,544.5/$ on 10 January 2025.
Intra-week trading was characterised by limited volatility, with the currency quoted at ₦1,428/$ on Monday, strengthening to ₦1,416/$ on Tuesday, easing slightly to ₦1,421/$ on Wednesday and Thursday, before settling at ₦1,424.5/$ on Friday.
Analysts described the movement as a mild but encouraging appreciation, pointing to better alignment between foreign exchange demand and supply at the start of the year.
The naira’s performance was underpinned by a marginal rise in Nigeria’s external reserves, which increased to $45.62 billion on Tuesday from $45.60 billion a day earlier, according to figures published by the CBN.
Although the increase was modest, it provided additional support for the currency and helped stabilise market expectations.
The apex bank has also expressed confidence in the medium-term outlook for the naira, projecting that external reserves could rise to about $51.04 billion in 2026, up from an estimated $45.01 billion in 2025. The CBN attributed the outlook to easing foreign exchange pressures, improved oil receipts, planned sovereign bond issuances and stronger diaspora remittance inflows.
In addition, the bank highlighted the growing impact of Nigeria’s domestic refining capacity as a structural support for the currency, noting that reduced reliance on imported petroleum products could significantly lower foreign exchange demand over time.
Economists say a firmer and more stable naira would help contain imported inflation, boost investor confidence and strengthen overall macroeconomic stability. Stronger external reserves also enhance the CBN’s capacity to manage volatility in the FX market and support Nigeria’s balance of payments.
Commenting on the outlook, Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said prospects for the naira in 2026 remain broadly positive, driven largely by the strength of external reserves.
He added that sustained policy consistency, stronger export earnings and continued reforms in the FX market would be critical to consolidating recent gains.
Nigeria’s foreign exchange market has recorded gradual improvements following recent reforms aimed at enhancing transparency and liquidity, with external reserves remaining a key indicator of currency stability and investor sentiment.
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