Nigeria’s currency closed the week on a firmer footing in the official foreign exchange market, reflecting improved liquidity conditions and sustained growth in the country’s external reserves.
Data released by the Central Bank of Nigeria (CBN) showed that the naira appreciated week-on-week by 0.5 per cent at the Nigerian Foreign Exchange Market (NFEM), settling at N1,417.95 to the dollar. This represents a gain of N6.55 compared with the N1,424.50 recorded at the close of trading the previous Friday.
On a daily basis, the local currency also posted a modest improvement, strengthening by N2.05 from N1,420.00 at the close of trading on Thursday. Over the course of the five trading sessions during the week, the naira recorded a cumulative appreciation of N7.05, rising from N1,425.00 quoted at the start of the week.
Meanwhile, the parallel market remained largely stable, with the naira exchanging at N1,490 per dollar throughout the week, indicating a relatively steady demand-supply balance outside the official window.
The improved performance of the currency coincided with continued growth in Nigeria’s external reserves. According to the CBN, reserves rose by 0.4 per cent week-on-week to $45.86 billion as of Thursday, January 15, 2026, up from $45.66 billion recorded during the same period a week earlier.
In its 2026 macroeconomic outlook, the Nigerian Economic Summit Group (NESG) noted that the country’s foreign reserves have climbed to their highest level in several years. The group also highlighted a significant narrowing of the gap between official and parallel market exchange rates, attributing the trend to enhanced transparency in the FX market and improving policy credibility.
The NESG advised that current gains be consolidated through sustained market liberalisation, backed by clear policy communication and transparent foreign exchange auctions. It further recommended closer coordination between monetary authorities, the banking sector and development finance institutions to support long-term exchange-rate stability.
According to the report, improved FX availability would be particularly beneficial to the manufacturing sector, which depends heavily on imported raw materials and intermediate inputs. More stable exchange-rate conditions, the group said, would help reduce volatility risks, ensure consistent access to foreign exchange and support increased output and competitiveness within the sector.
However, the NESG warned that recent improvements remain vulnerable to external shocks. It cautioned that a weaker global oil market in 2026, driven by a projected supply surplus, could dampen export earnings and place renewed pressure on the naira, with potential spillover effects on import costs and inflation.
The CBN, on its part, expressed optimism that ongoing reforms would help sustain exchange-rate stability in the medium term. The apex bank projected that external reserves could rise to about $51.04 billion in 2026, from an estimated $45.01 billion in 2025, supported by easing FX pressures, improved oil revenues, sovereign bond issuances and increased diaspora remittance inflows.