Dollar Exchange Rate: Naira Hits New High At Official Market

The Nigerian currency, Naira, on Tuesday appreciated to a record high of about ₦1,400 against the United States dollar at the official market, continuing its positive momentum in the Nigerian Foreign Exchange Market (NFEM).

Data released by the Central Bank of Nigeria (CBN) showed that the local currency strengthened by 1.26 per cent during the midweek trading session, with the dollar quoted at ₦1,401.22 at the Nigerian Foreign Exchange Market.

Naijaonpoint reports that this represents a gain of ₦17.73 when compared with the ₦1,418.95 recorded on Monday.

The naira had already posted significant gains in the previous trading session, closing at about ₦1,401.20 to the dollar, its strongest performance since the introduction of the Electronic Foreign Exchange Matching System.

Market data indicate that the currency has appreciated steadily over several sessions, recording daily gains ranging between 0.1 per cent and 0.36 per cent on different trading days.

The sustained improvement reflects growing confidence in the foreign exchange market following recent regulatory reforms by the apex bank.

At the parallel market, also known as the Bureau de Change segment in Lagos, the naira traded between ₦1,475/$ and ₦1,490/$ as of January 27.

Market checks showed that the average buying rate stood at ₦1,480 to the dollar, while the selling rate averaged ₦1,490, indicating a narrowing spread amid improving liquidity.

Analysts attributed the improved performance at the parallel market to increased foreign exchange supply and enhanced regulatory oversight by the CBN.

The naira’s latest appreciation comes amid continued implementation of foreign exchange reforms by the CBN, alongside improving FX liquidity in the market.

The currency has sustained its positive run into early 2026, building on the momentum recorded in 2025, when it posted one of its strongest performances in a decade, appreciating by between seven and nine per cent against the dollar.

Naijaonpoint reports that experts had largely projected that the naira would remain within a relatively stable range in the medium term, supported by improved liquidity conditions and ongoing macroeconomic reforms.

Most projections suggest that the currency will trade between ₦1,400 and ₦1,500 per dollar in 2026.

Similarly, the Nigerian Economic Summit Group has projected that the naira will trade around ₦1,480 to the dollar this year.

The group also expects Nigeria’s external reserves to rise steadily to about $52bn in 2026, driven by the consolidation of recent macroeconomic reforms and sustained stabilisation efforts.