The naira ended the trading week on a positive note, appreciating to ₦1,417.95 per dollar at the official foreign exchange (FX) market, supported by a sustained rise in Nigeria’s external reserves.
Data from the Central Bank of Nigeria (CBN) showed that the local currency strengthened by 0.5 per cent week-on-week, gaining ₦6.55 as the dollar was quoted at ₦1,417.95 at the Nigerian Foreign Exchange Market (NFEM), compared with ₦1,424.50 recorded at the close of trading the previous Friday.
On a day-on-day basis, the naira also appreciated by ₦2.05, closing at ₦1,417.95 on Friday from ₦1,420.00 the previous day. Over the five trading sessions during the week, the currency recorded a cumulative gain of 0.5 per cent, or ₦7.05, improving from ₦1,425.00 quoted on Monday at the NFEM.
At the parallel market, commonly referred to as the black market, the naira remained stable, exchanging at ₦1,490 per dollar throughout the week.
Nigeria’s external reserves maintained their upward trajectory, rising by 0.4 per cent week-on-week to $45.86 billion as of Thursday, January 15, 2026, from $45.66 billion recorded on the same day the previous week.
In its 2026 macroeconomic outlook report, the Nigerian Economic Summit Group (NESG) observed that the country’s foreign reserves had climbed to their highest level in several years, while the gap between the official and parallel market exchange rates narrowed significantly. According to the report, the development reflects improved transparency in the FX market and stronger policy credibility.
The NESG recommended the sustained implementation of market liberalisation, supported by clear communication, transparent FX auctions, and coordinated engagement with the banking sector and development finance institutions, as key measures to further stabilise the naira.
The report also noted that improved foreign exchange availability would help sustain and expand manufacturing activities, given the sector’s reliance on imported raw and intermediate inputs. More stable FX conditions, it added, would reduce currency volatility risks and ensure more predictable access to imported components, thereby enhancing competitiveness and boosting output growth.
However, the NESG cautioned that the foreign exchange gains recorded toward the end of 2025 remain fragile. It warned that a weaker global oil market in 2026, driven by a projected supply surplus, could dampen export earnings and renew pressure on the naira, with potential knock-on effects on the cost of imported goods and services.
Meanwhile, the apex bank said its ongoing reforms are expected to 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 issuances, and increased diaspora remittance inflows.
[BusinessDay]
