The naira ended the week on a strong note, closing at N1,417.95 per dollar in the official foreign exchange (FX) market, as Nigeria’s external reserves sustained their upward momentum.
Data from the Central Bank of Nigeria (CBN) showed that the local currency appreciated by 0.5 percent week-on-week, gaining N6.55 as the dollar was quoted at N1,417.95 at the Nigerian Foreign Exchange Market (NFEM), compared with N1,424.50 recorded on Friday of the previous week.
On a day-on-day basis, the naira strengthened by N2.05 to close at N1,417.95 on Friday, from N1,420.00 at the close of trading the preceding day. Over the five trading sessions during the week, the currency also recorded a cumulative gain of 0.5 percent, or N7.05, appreciating from N1,425.00 quoted on Monday at the NFEM.
In the parallel market, also known as the black market, the naira remained stable, exchanging at N1,490 per dollar throughout the week.
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Nigeria’s external reserves continued their steady climb, rising by 0.4 percent week-on-week to $45.86 billion as of Thursday, January 15, 2026, from $45.66 billion recorded on the corresponding day of the previous week.
In its 2026 macroeconomic outlook report, the Nigerian Economic Summit Group (NESG) noted that foreign reserves had reached their highest level in several years, while the spread between the official and parallel market exchange rates narrowed significantly. According to the report, this development reflects improved transparency in the foreign exchange market and stronger policy credibility.
The NESG recommended the continuation of market liberalisation, supported by clear communication and transparent foreign exchange auctions, coordinated with the banking sector and development finance institutions, to help stabilise the naira further.
The report added that improved foreign exchange availability would help sustain and expand operations in the manufacturing sector, which relies heavily on imported raw and intermediate inputs. It noted that more stable FX conditions would reduce currency volatility risks and ensure more reliable access to imported components, thereby supporting manufacturing competitiveness and output growth.
However, the NESG cautioned that the foreign exchange gains recorded at the end of 2025 rest on fragile inflows. A weaker global oil market in 2026, driven by a projected supply surplus, could reduce export earnings and exert renewed pressure on the naira, with knock-on effects on the cost of imported goods and services.
The apex bank, on its part, said ongoing reforms are expected to help sustain exchange-rate stability, while external reserves are projected to rise further. According to the CBN, reserves are forecast to increase to about $51.04 billion in 2026 from an estimated $45.01 billion in 2025, supported by easing FX pressures, higher oil earnings, sovereign bond issuance and increased diaspora remittance inflows.