Nigeria’s naira continued its upward momentum midweek, appreciating to around ₦1,400 per dollar at the official foreign exchange market, as global pressure on the US dollar intensified. The local currency has maintained a steady recovery since the start of the week, reflecting improved sentiment in Nigeria’s foreign exchange landscape and easing volatility.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira closing at approximately ₦1,400.66/$, marking its strongest level in weeks. This follows gains recorded in the previous trading session, where the currency settled at ₦1,401.2/$. Analysts say the recent performance highlights renewed confidence driven by policy reforms and better liquidity conditions.
While the official market recorded sharp gains, the parallel market reacted more cautiously. Informal exchange rates in Lagos Bureau de Change (BDC) circles hovered between ₦1,475/$ and ₦1,490/$, with an average buy rate of ₦1,480/$ and sell rate of ₦1,490/$. Despite the remaining gap between official and street rates, market watchers note that the premium has narrowed as volatility declines.
The naira’s recent appreciation builds on momentum carried into early 2026, following a strong showing in 2025 when the currency recorded its best performance in over a decade, gaining between 7% and 9% against the US dollar. Continued regulatory reforms by the Central Bank of Nigeria (CBN), alongside improved FX inflows, have played a key role in stabilizing the market.
Globally, the naira’s gains have been supported by a weakening US dollar, which recently fell to its lowest level since 2022. The dollar slump followed comments from US President Donald Trump indicating comfort with a weaker currency, alongside concerns over US debt levels and political uncertainty. As investors rotate away from US assets into gold and emerging markets, currencies like the naira are benefiting from the shifting global tide.
source: nairametrics