The naira extended its upward momentum against the US dollar on Wednesday, strengthening in the official foreign exchange market as improved dollar liquidity met international payment demand at the Central Bank of Nigeria’s FX window.
The official spot rate closed at ₦1,358 per dollar, marking one of the strongest levels recorded since the implementation of foreign exchange reforms. Market checks also confirmed parallel appreciation across the informal segment.
Recent market assessments indicate growing expectations that the naira could trade within the ₦1,300–₦1,350 per dollar range during the first quarter of 2026, supported by improving macroeconomic fundamentals.
Analysts attribute the positive outlook to increased foreign portfolio investment inflows, higher oil export receipts, and a steady buildup in Nigeria’s external reserves.
Import-dependent companies have also benefited from the currency rally, as the stronger naira has reduced the local currency cost of settling foreign obligations, easing pressure on corporate balance sheets.
Official data from the Central Bank showed the naira appreciated by 1.08% to ₦1,358.28/$ at the Nigerian Foreign Exchange Market (NFEM), underpinned by robust US dollar supply.
The parallel market mirrored the trend, with the naira gaining 0.87% to close at ₦1,431/$, reflecting improving confidence across both regulated and informal currency channels.
Market operators said the appreciation was driven largely by increased foreign portfolio investor participation, stronger export proceeds, and higher dollar supply from non-bank corporates at the official window.
The sustained inflow of hard currency has reinforced positive sentiment around the naira, strengthening expectations that exchange rate stability could be maintained in the near term.
