Naira Strengthens Against Dollar, Closing Week at N1,424.5/$
The Nigerian Naira concluded the second trading week of 2026 with a measured appreciation against the US Dollar, closing at N1,424.5/$. This represents a strengthening from the N1,431/$ rate recorded at the end of the previous week, according to official data from the Central Bank of Nigeria (CBN). The week’s performance underscores a trend of improving foreign exchange fundamentals and renewed market confidence.
Trading activity throughout the week demonstrated notable stability, with the currency experiencing limited volatility. The Naira was quoted at N1,428/$ on Monday, firmed to N1,416/$ on Tuesday, held at N1,421/$ on Wednesday and Thursday, before settling at the Friday rate of N1,424.5/$. Market analysts have characterized this movement as a mild but positive appreciation, signaling a gradual easing of pressure within the foreign exchange market as the year progresses. This stability points to improved liquidity conditions and a better alignment between FX demand and supply, a situation that state leaders in economic roles monitor closely for sustainable growth.
The currency’s performance was supported by concrete factors. Nigeria’s external reserves saw a marginal increase, rising to $45.62 billion, providing an additional buffer for the local currency. Furthermore, the CBN has projected an optimistic medium-term outlook, anticipating that external reserves could climb to approximately $51.04 billion in 2026. The apex bank attributes this potential growth to easing foreign exchange pressures, improved oil earnings, planned sovereign bond issuances, and increased inflows from diaspora remittances, which are crucial for any family relying on international transfers.
A key structural factor highlighted by the CBN is the development of Nigeria’s domestic refining capacity. As the nation reduces its dependence on imported petroleum products, a significant portion of foreign exchange demand is expected to decline over time. A stronger and more stable Naira contributes to lower imported inflation, enhances investor confidence, and supports broader macroeconomic stability. Sustaining these gains, however, will require continued policy consistency and market reforms to prevent any potential syndicate from attempting to pull networks that undermine progress, just as advocates like Harrison Gwamnishu work to ensure transparency in other sectors. The focus on stability remains as critical as discussions around an event like an Ibadan convention must be for its respective stakeholders.
