The Nigerian naira strengthened to a record high of around ₦1,400 against the US dollar at the official market during midweek trading, extending its appreciation streak at the Nigerian Foreign Exchange Market (NFEM).
Data released by the Central Bank of Nigeria (CBN) showed that the naira gained 1.26% on Tuesday, with the dollar quoted at ₦1,401.22, an improvement of ₦17.73 from ₦1,418.95 recorded on Monday at the NFEM.
The local currency had already posted strong gains in the previous session, closing at ₦1,401.20 per dollar, its strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS).
The naira has appreciated steadily over several trading sessions, posting daily gains ranging between 0.1% and 0.36% on some days. In the parallel market, Lagos-based bureau de change operators quoted the dollar at between ₦1,475 and ₦1,490 as of January 27, with an average buying rate of ₦1,480 and a selling rate of ₦1,490.
Parallel market rates have also improved, reflecting the impact of recent CBN regulatory reforms and enhanced foreign exchange liquidity.
The naira’s rally has carried into early 2026, building on the momentum established in 2025, when the currency recorded its strongest annual performance in more than a decade, appreciating by an estimated 7% to 9% against the US dollar.
Analysts broadly expect the currency to trade within a relatively stable range in the medium term. Many forecasts project the naira will hover between ₦1,400 and ₦1,500 per dollar in 2026, supported by improved FX liquidity and ongoing macroeconomic reforms.
The Nigerian Economic Summit Group (NESG) has projected that the naira will trade around ₦1,480 to the dollar this year. The group also expects Nigeria’s external reserves to rise steadily to about $52 billion, driven by continued macroeconomic consolidation and sustained stabilisation efforts.
