The naira on Tuesday strengthened to a record high of ₦1,401.22 per dollar at the official foreign exchange (FX) market, marking its strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS).
Data released by the Central Bank of Nigeria (CBN) showed that the local currency appreciated by 1.26% on the day, as the dollar was quoted at ₦1,401.22, representing a gain of ₦17.73 compared with ₦1,418.95 recorded on Monday at the Nigerian Foreign Exchange Market (NFEM).
The data revealed that FX market participants placed bids as high as ₦1,400 per dollar.
The appreciation at the official window came amid relative stability in the parallel market, also known as the black market, where the naira closed flat at ₦1,485 per dollar.
Nigeria’s external reserves have continued on a steady upward trajectory, providing additional support for the domestic currency. According to figures published by the CBN on its website, external reserves rose to $46.03 billion as of January 26, 2026, reflecting sustained inflows and improved confidence in the foreign exchange market.
Analysts largely expect the naira to remain within a relatively stable range in the medium term. Many projections suggest the currency will trade between ₦1,400 and ₦1,500 per dollar this year, supported by improved FX liquidity and ongoing macroeconomic reforms.
Tilewa Adebanjo, Chief Executive Officer of CFG Advisory, said the naira is likely to trade within the ₦1,400 to ₦1,500 per dollar band, citing strengthening fundamentals. According to him, ongoing reforms in the oil sector, rising foreign capital inflows, and stronger diaspora remittances are combining to underpin exchange rate stability and sustain confidence in the FX market.
Similarly, the Nigerian Economic Summit Group (NESG) has projected that the naira will trade around ₦1,480 to the dollar in 2026. The group also expects Nigeria’s external reserves to rise steadily to about $52 billion over the same period, driven by the consolidation of recent macroeconomic reforms and sustained stabilisation efforts.
The CBN’s own outlook aligns broadly with these expectations. The apex bank assumes an average exchange rate of ₦1,451.63 per dollar in the Nigerian Foreign Exchange Market during the fourth quarter of 2025, with a further moderation to around ₦1,400 per dollar in 2026. This projection is anchored on expectations of improved FX market efficiency, stronger capital inflows, a current account surplus, and a broad-based economic recovery.
The recent strengthening of the naira has coincided with reforms in the FX market architecture. On October 3, 2024, the Central Bank of Nigeria announced the introduction of the Electronic Foreign Exchange Matching System, a platform designed to curb speculative activities and improve transparency and price discovery in Nigeria’s foreign exchange market.
The EFEMS platform, which is used by authorised dealers in the Nigerian Foreign Exchange Market, became fully operational on December 2, 2024, following a two-week test run conducted in November. Since its launch, market participants have pointed to improved confidence, better price alignment, and enhanced transparency as key benefits supporting recent movements in the naira.
