The naira opened 2026 on a strong note, appreciating to ₦1,430.84 per US dollar at the official window, signaling a positive start to the year for Nigeria’s currency. This rise comes on the back of relative stability in 2025, supported by Central Bank of Nigeria (CBN) interventions and steady foreign exchange (FX) supply. Analysts see the improved start as a sign that the naira may maintain stability amid ongoing economic reforms.
In the final week of 2025, the naira hovered around ₦1,440/$ at the official window, gaining ₦12.53 per dollar and trading within a range of ₦1,427 to ₦1,445.68. The improvement reflected the impact of FX interventions, better liquidity in the market, and a cushion from Nigeria’s growing external reserves. Three out of four trading sessions recorded gains, marking a notable improvement compared with previous periods of volatility.
Experts highlight that 2025 was a year of relative calm for the naira, compared with the extreme fluctuations seen in prior years. Meristem Securities noted that while the average exchange rate last year (₦1,519.63/$) was slightly weaker than 2024, volatility dropped sharply from 4.58% to 0.53%, demonstrating the effect of stronger FX liquidity, CBN reforms, and transparent market practices like the Electronic Foreign Exchange Matching System and FX Code.
Nigeria’s external reserves also strengthened in 2025, rising 10.6% to $45.21 billion. After facing challenges in the first half of the year, reserves rebounded thanks to higher trade receipts, capital importation, and Eurobond proceeds. Analysts from Meristem, Coronation Research, and AIICO Capital all project that these underlying fundamentals, coupled with consistent CBN policies, will keep the naira broadly stable in 2026, likely trading between ₦1,350/$ and ₦1,528/$.
The CBN has reiterated its commitment to balancing price stability with economic growth in 2026. By deploying strategic policy instruments to attract foreign investment and maintain FX liquidity, the bank aims to sustain confidence in the naira. With ongoing reforms and cautious fiscal measures, analysts believe Nigeria’s currency is positioned for a year of relative stability, supporting both businesses and consumers who rely on predictable exchange rates.
source: punch