Nigeria’s naira recorded a modest appreciation in mid-week trading, closing at N1,359 per US dollar at the official foreign exchange market on Wednesday. This marks a steady improvement from N1,367/$ on Tuesday and N1,384.5/$ on Monday, signaling a gradual recovery in investor confidence and a more stable macroeconomic outlook. Analysts attribute this trend to consistent foreign reserve levels, tighter monetary policies, and recent positive credit rating actions.
Despite gains in the official market, the naira experienced mild depreciation in the parallel market, trading at N1,453/$ on Wednesday, slightly weaker than N1,445/$ on Tuesday. However, the gap between official and parallel rates narrowed to N94, down from N96 last week, suggesting a slow convergence of market dynamics and easing pressure on the local currency.
Central Bank of Nigeria (CBN) data shows that external reserves stood at $46.59 billion as of February 2, 2026, providing the government with capacity for market interventions and short-term support for the naira. The improved exchange rate performance is also linked to narrowing rate differentials, which indicate better dollar liquidity and greater trust in ongoing foreign exchange reforms.
Looking ahead, analysts from CardinalStone project that the naira could trade within a range of N1,350 to N1,450 per dollar throughout 2026. The projection reflects expectations of stronger capital inflows, moderated import demand, and continued monetary discipline—all factors that could stabilize foreign exchange supply and curb speculative pressures. Investor sentiment has been further bolstered by S&P Global Ratings reaffirming Nigeria’s sovereign credit rating at B-, while maintaining a positive outlook for economic recovery.
As Nigeria navigates 2026, the naira’s trajectory is expected to remain closely tied to capital flows, reserve management, and credible macroeconomic reforms. The recent mid-week appreciation provides cautious optimism for greater currency stability and reinforces confidence in the Central Bank’s efforts to strengthen Nigeria’s financial markets.
source: nairametrics