The Nigerian naira strengthened significantly against the US dollar in both official and parallel foreign exchange markets last week, marking a sustained positive trend for the local currency.
Data from the Central Bank of Nigeria (CBN) indicated that the naira appreciated to N1,386.55 per dollar on Friday, improving from the previous day’s rate of N1,396.99. This represented a daily gain of N10.44 in the official market.
In the parallel, or black, market, the naira also rose, closing at N1,470 per dollar on Friday, up from N1,480 the day before—a daily improvement of N10.
The appreciation extended to a weekly basis. Compared to the previous Friday, the naira gained N35.08 in the official market and N20 in the parallel market, highlighting broad-based strengthening across trading segments.
This uptrend coincides with a rise in Nigeria’s foreign exchange reserves. As of January 29, 2026, reserves stood at $46.18 billion, an increase from $46.01 billion recorded the prior week. A growing reserve buffer typically supports currency stability by enhancing the central bank’s capacity to intervene in the forex market and meet external obligations.
Analysts note that consistent intervention, improved dollar liquidity, and adjusted market dynamics have contributed to the recent support for the naira. The convergence of rates between official and parallel markets, which previously showed a wide gap, has also narrowed, reflecting a more unified exchange rate environment.
The sustained appreciation may help moderate imported inflation and reduce pressure on the central bank’s monetary policy. However, maintaining momentum will depend on the continued stability of crude oil earnings—Nigeria’s primary source of foreign exchange—and the effectiveness of ongoing foreign exchange management policies.
For now, the naira’s performance offers a measure of relief after periods of volatility, with market watchers closely monitoring reserve levels and policy consistency to gauge the durability of the current trend.
