Naira Achieves Historic Milestone at ₦1,400 to Dollar in Official Market
The Nigerian naira has reached a significant milestone, strengthening to a record high of approximately ₦1,400 to the US dollar during midweek trading in the official market. This development marks a continuation of the currency's appreciation trend that has been observed since the beginning of the week, reflecting positive market dynamics and regulatory interventions.
Detailed Performance Metrics and Market Data
According to data released by the Central Bank of Nigeria (CBN), the naira appreciated by 1.26 per cent on Tuesday, January 27, at the Nigerian Foreign Exchange Market (NFEM). The dollar was quoted at ₦1,401.22, representing a substantial gain of ₦17.73 compared to the ₦1,418.95 recorded on Monday, January 26.
This performance follows significant gains in the previous trading session, where the naira closed at around ₦1,401.20 per dollar. This level is noted as the currency's strongest position since the introduction of the Electronic Foreign Exchange Matching System (EFEMS), highlighting the sustained upward momentum.
Parallel Market Dynamics and Analyst Insights
In the parallel market, bureau de change operators in Lagos reported the dollar trading between ₦1,475 and ₦1,490 on January 27. The average buying and selling rates were recorded at ₦1,480 and ₦1,490 respectively, indicating a narrower gap with official rates compared to previous periods.
Market analysts have attributed the improved performance in both markets to several key factors:
- Enhanced foreign exchange liquidity due to increased inflows and better management.
- Further regulatory reforms implemented by the CBN to stabilize the currency.
- Ongoing macroeconomic adjustments that have bolstered investor confidence.
Sustained Momentum and Future Projections
The naira has maintained its upward trajectory into early 2026, building on the impressive gains recorded throughout 2025. During that year, the currency posted its strongest performance in over a decade, appreciating between 7 and 9 per cent against the US dollar, a remarkable achievement in Nigeria's economic landscape.
Looking ahead, analysts generally expect the naira to remain within a relatively stable range in the medium term. Several projections indicate that the currency will trade between ₦1,400 and ₦1,500 to the dollar throughout this year. This stability is anticipated to be supported by:
- Continued improvements in foreign exchange liquidity.
- The consolidation of recent economic reforms.
- Sustained efforts to stabilize the macroeconomic environment.
Economic Forecasts and Reserve Expectations
The Nigerian Economic Summit Group has provided specific projections for 2026, forecasting that the naira will trade at around ₦1,480 to the dollar. Additionally, the group expects Nigeria's external reserves to rise steadily to approximately $52 billion. This growth is driven by the consolidation of recent reforms and ongoing stabilization efforts, which are enhancing the country's economic resilience.
The current appreciation of the naira represents a positive development for Nigeria's economy, potentially leading to reduced import costs, lower inflation pressures, and increased investor confidence. As the CBN continues to implement strategic measures, market participants will be closely monitoring the currency's performance in the coming months.
