On the fourth trading day of the New Year, the naira gained strength and reached a record high of 1,418.26/$ at the official foreign exchange market.
The Naira began the year strongly on Friday, closing trading at 1,430.84/$, and it has continued to gain value at each trading session, according to data from the Central Bank of Nigeria. On Monday, it increased to $1,429.30. On Tuesday, the rate of appreciation rose to 1,419.06/$, representing a 0.72 percent (N10.24) increase in a single session. Despite Wednesday’s 0.06 percent increase margin, the naira kept rising and reached a record high not seen in more than a year.
BrandSpur banking and finance news desk reports that the naira has been steadily increasing in value relative to the dollar since the start of the new year, with a total gain of about N17 between December 31 and January 7. The gap between the highest and lowest rates during this time is comparatively small, usually falling between N8 and N12, suggesting that volatility is under control and reflecting a stable market as opposed to speculative or panic-driven trading.
The naira dropped by 0.21% to 1,467/$ at the end of trading on Wednesday, but the parallel market presents a different picture. This illustrates conflicting feelings and different pressures during the official and unofficial foreign exchange windows.
In the meantime, the naira’s performance at the official window is in line with 2025, when the currency’s volatility was restrained and it traded between 1,400 and 1,500/$. After surpassing the 1,500/$ mark in mid-September, it remained largely below that level for the rest of 2025. Analysts have predicted a steady trading pattern for the naira in the upcoming year.
According to Meristem Securities’ annual outlook, “Stability to Strength: Panning Gems on Firmer Grounds,” the naira would move between N1,350.00 and N1,528.57 in the coming year.
It revealed: “The official exchange rate is expected to remain broadly stable in 2026, supported by sustained foreign inflows and a resilient external reserve position. Planned foreign currency–denominated issuances by the Federal Government, as outlined in the Medium-Term Expenditure Framework, are also expected to provide an additional boost to external reserves. Although oil receipts may remain relatively soft, inflows from gas and non-oil exports should buoy reserve levels in 2026. Furthermore, robust foreign portfolio investment inflows, underpinned by increased investor confidence and capital flight driven by a potential dovish stance in developed economies, should further support foreign exchange liquidity.
“Together, these factors should preserve the Central Bank of Nigeria’s ability to intervene in the foreign exchange market and maintain adequate liquidity, thereby supporting overall naira stability. The parallel market is expected to remain relatively stable in 2026, reflecting the impact of ongoing foreign exchange reforms designed to enhance transparency and limit speculative activity. The recent issuance of Bureau de Change licences further strengthens the Central Bank of Nigeria’s oversight of the informal market and is expected to help contain excessive volatility. Taking these dynamics into account, we project the official exchange rate to trade within a range of N1,350.00/$ to N1,528.57/$ in 2026, reflecting a broadly stable naira bolstered by solid underlying fundamentals and effective policy measures,” it ended.
