The naira ended the five-day trading week largely flat across the foreign exchange (FX) market as Nigeria’s external reserves crossed the $46 billion mark.
Data published by the Central Bank of Nigeria (CBN) showed that the naira appreciated slightly to N1,421.62 per dollar on Friday, representing a gain of 45 kobo day-on-day from N1,422.07 recorded the previous day at the Nigerian Foreign Exchange Market (NFEM).
On a five-day trading basis, the local currency depreciated marginally by 34 kobo, from N1,420.28 quoted on Monday to N1,421.62 on Friday at the NFEM.
Week-on-week, the naira recorded a modest loss of N3.68, weakening from N1,417.94 on Friday of the previous week to the current closing rate.
Nigeria’s foreign currency reserves have continued on a steady growth path, rising to $46.01 billion as of January 22, 2026. This reflects an increase of 0.3 percent, or about $150 million, from $45.86 billion recorded on January 15, 2026, according to CBN data.
In her personal statement at the last Monetary Policy Committee (MPC) meeting held in November 2025, Aku Pauline Odinkemelu, MPC member, said the exchange rate remained stable, supported by rising capital inflows and a persistent current account surplus. She noted that external reserves grew for the third consecutive month, reaching $43.20 billion in October 2025, equivalent to about 8.3 months of import cover. According to her, this significantly strengthened the economy’s buffer against external shocks and underscored sustained confidence among investors and market participants.
Aloysius Ordu, MPC member, said the naira sustained its resilience, appreciating by 1.89 percent and 2.26 percent at the official and bureau de change segments respectively in October, with notable convergence between both rates. He said the narrowing premium signalled improved market liquidity and more effective price discovery mechanisms, adding that autonomous sources continued to dominate FX inflows as the market deepened and direct interventions were scaled back.
Bala Moh’d Bello, MPC member, said transparency in foreign exchange management policies and sustained macroeconomic stability are expected to further boost investor confidence, improve capital inflows and generate positive pass-through effects to domestic prices.
Emem Usoro, CBN deputy governor, said external buffers have strengthened, with gross reserves reaching near post-pandemic highs, supporting a more resilient foreign exchange market.
Lydia Jafiya, another MPC member, said the foreign exchange rate has remained stable, supported by improved market liquidity, enhanced policy coordination and positive market sentiment.
Lamido Yuguda, MPC member, however noted that exchange rate depreciation pressures remain, as persistent foreign exchange demand continues despite steady reserve accumulation and capital inflows. He cautioned that the volatility inherent in foreign portfolio investment flows, which have become a significant source of inflows, presents potential fragility for external stability.
Looking ahead, the naira is expected to trade within the N1,400 to N1,500 per dollar band, as improving oil sector reforms, rising capital inflows and stronger diaspora remittances combine to support exchange rate stability, according to Tilewa Adebajo, chief executive officer of CFG Advisory.
Meanwhile, the Nigerian Economic Summit Group has projected that the naira will trade at about N1,480 to the dollar in 2026, alongside a steady rise in Nigeria’s external reserves to $52 billion, as the country consolidates recent macroeconomic reforms and stabilisation efforts.