The naira reached a record high of N1,418.26 against the US dollar in the official foreign exchange market on Wednesday, January 7, 2026, marking its strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS). The appreciation reflects steady growth in Nigeria’s external reserves and signals renewed confidence in the country’s foreign exchange market.
According to data from the Central Bank of Nigeria (CBN), the naira has strengthened by 8.2 percent year-on-year, rising from N1,534.16 on January 7, 2025. On a day-to-day basis, the local currency gained 80 kobo from Tuesday’s close at N1,419.06. Meanwhile, in the parallel or black market, the naira remained stable at N1,490 per dollar, indicating improved liquidity and easing pressure across both markets.
Nigeria’s external reserves, which enable the CBN to moderate exchange-rate volatility, rose to $45.62 billion as of January 6, 2026, up 11.6 percent from $40.88 billion at the start of 2025. Analysts from Proshare predict that the official exchange rate could strengthen further to around N1,350 per dollar in the first quarter of 2026, supported by higher oil production, sustained foreign inflows, and continued policy support from the CBN.
Experts credit the gains to ongoing reforms in the foreign exchange market, including the introduction of Bloomberg BMatch and EFEMS, which enhanced transparency and efficiency in FX trading. CBN Governor Olayemi Cardoso noted that these reforms have drastically narrowed the gap between the official and parallel market rates from over 60 percent to less than 2 percent, reducing market distortions and boosting investor confidence.
Looking ahead, the CBN projects external reserves could rise to $51.04 billion in 2026, aided by increased diaspora remittances, higher oil revenues, and reduced fuel import dependence following the expansion of domestic refining capacity. Cardoso emphasized that the reforms have restored credibility in the FX market, enabling businesses to plan with certainty and supporting a stronger, more stable naira.
source: Business day