The Nigerian Naira has reached a record high against the US dollar, trading at 1,400 in the official market during midweek trading. This marks a significant appreciation of the currency, which has been on an upward trend since the start of the week in the Nigerian Foreign Exchange Market.
According to data from the Central Bank of Nigeria, the Naira gained 1.26% on Tuesday, with the dollar quoted at 1,401.22, representing a gain of 17.73 compared to 1,418.95 on Monday. This appreciation is part of a larger trend, with the Naira making significant gains in previous sessions, reaching its strongest level since the introduction of the Electronic Foreign Exchange Matching System.
The parallel market, which operates informally in Lagos, has also seen improvements, with rates ranging from 1,475/$ to 1,490/$. The Central Bank’s regulatory reforms and improved foreign exchange liquidity have contributed to these gains. The Naira’s appreciation is expected to continue, with analysts predicting a stable range of 1,400 to 1,500 per dollar in the medium term.
The Nigerian Economic Summit Group has projected that the Naira will trade around 1,480 to the dollar in 2026, driven by the consolidation of macroeconomic reforms and stabilisation efforts. The group also expects Nigeria’s external reserves to rise steadily to around $52 billion over the same period.
The Naira’s performance is a significant development for Nigeria’s economy, which has seen a decade-high performance of 7%-9% against the US dollar in 2025. The currency’s appreciation is expected to have a positive impact on the country’s trade and investment, with improved foreign exchange liquidity and ongoing macroeconomic reforms supporting the Naira’s stability.
As the Naira continues to appreciate, it is likely to have a significant impact on Nigeria’s economy and trade relationships. With the Central Bank’s efforts to stabilize the currency and improve foreign exchange liquidity, the Naira is expected to remain relatively stable in the medium term. The Nigerian government’s macroeconomic reforms and stabilisation efforts are also expected to support the Naira’s performance, making it an important development to watch in the coming months.
