The naira recorded a marginal depreciation against the U.S. dollar at the official foreign exchange window on Thursday, closing at ₦1,419.71 per dollar. This represents a ₦1.45 decline compared with the previous close of ₦1,418.26 per dollar, based on data published by the Central Bank of Nigeria (CBN).
During the trading session, the local currency largely remained within a narrow range, fluctuating between a low of ₦1,418.00 and a high of ₦1,422.00 per dollar, reflecting relatively stable market conditions.
Market participants expect the naira to continue trading in line with prevailing demand and supply dynamics, with sentiment supported by signs of improvement in Nigeria’s external reserves position.
In its 2026 outlook, professional services firm PwC projected that the naira would remain broadly stable throughout 2026, underpinned by ongoing reforms implemented by the CBN and improved portfolio investment inflows.
The naira recorded notable gains in 2025, and analysts have anchored their 2026 foreign exchange projections on expectations that the CBN will continue to actively support exchange rate stability.
This outlook is further supported by rising external reserves, although analysts caution that oil market risks remain a key vulnerability for Nigeria’s foreign exchange earnings.
Uncertainty surrounding global oil markets is expected to persist into the year, with geopolitical tensions continuing to fuel volatility in energy prices and uncertainty around supply routes and trade flows.
PwC projected that oil prices could soften toward the $55 per barrel range in 2026, a development that may weigh on Nigeria’s fiscal revenues and foreign exchange inflows. The firm also warned that political instability across parts of West Africa, including coups and the risk of sanctions or border restrictions, could disrupt regional trade and heighten external vulnerabilities for Nigeria.
In the parallel market, the naira strengthened to around ₦1,465 per dollar, highlighting the persistent divergence between official and informal market segments.
Meanwhile, global commodity markets recorded strong gains on Thursday. Brent crude rose by 2.02% to trade at $61.17 per barrel, while U.S. WTI gained 1.95% to $57.05 per barrel.
The rebound in oil prices reflected renewed buying interest, as well as a geopolitical risk premium linked to developments surrounding Venezuela’s oil sector.
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