The naira closed the week on a positive note, trading at N1,417.95 per dollar in Nigeria’s official foreign exchange market, reflecting a steady appreciation as the country’s external reserves continued to rise. The local currency strengthened by 0.5 percent week-on-week, gaining N6.55 compared to last Friday’s N1,424.50 at the Nigerian Foreign Exchange Market (NFEM).
On a daily basis, the naira inched up by N2.05, closing Friday at N1,417.95 from N1,420.00 the previous day. Across the five trading sessions of the week, the currency achieved a cumulative gain of 0.5 percent, or N7.05, starting from N1,425.00 on Monday. Meanwhile, the parallel market, often referred to as the black market, remained steady at N1,490 per dollar throughout the week, signaling relative stability in informal currency trading.
Nigeria’s external reserves continued their upward momentum, increasing by 0.4 percent week-on-week to $45.86 billion as of January 15, 2026, up from $45.66 billion the previous week. Analysts from the Nigerian Economic Summit Group (NESG) highlighted that this represents the highest reserves in several years, with a notable narrowing of the gap between official and parallel exchange rates, reflecting improved market transparency and stronger policy credibility.
The NESG emphasized that sustained foreign exchange availability is crucial for sectors like manufacturing, which depend on imported raw materials. Stable FX conditions reduce currency volatility, ensuring reliable access to imported components, boosting competitiveness, and supporting growth. The group recommended continued market liberalization backed by clear communication, transparent auctions, and coordinated efforts with banks and development finance institutions.
However, experts caution that the naira’s gains remain vulnerable to external pressures. A weaker global oil market in 2026 could reduce export earnings, potentially reversing some of the currency’s recent strength. The Central Bank of Nigeria (CBN), however, remains optimistic, projecting reserves to rise to $51.04 billion by the end of 2026, supported by higher oil revenues, diaspora remittances, sovereign bond issuance, and ongoing reforms aimed at maintaining exchange-rate stability.
source: Business day