The Nigerian naira extended its recent rally at the official foreign exchange market, trading near ₦1,400 against the US dollar during midweek sessions on the Nigerian Foreign Exchange Market (NFEM).
Figures released by the Central Bank of Nigeria (CBN) showed that the local currency gained 1.26 per cent on Tuesday, with the dollar quoted at ₦1,401.22. This marked an appreciation of ₦17.73 from Monday’s closing rate of ₦1,418.95 at the NFEM.
The naira had already strengthened in the previous trading session, closing at ₦1,401.2 per dollar—its most robust performance since the launch of the Electronic Foreign Exchange Matching System (EFEMS).
Market trends indicate sustained upward movement, with the currency recording daily gains ranging between 0.1 per cent and 0.36 per cent across several sessions, reflecting improved demand-supply dynamics in the FX market.
In the parallel market, commonly referred to as the Lagos Bureau De Change (BDC) segment, the dollar exchanged between ₦1,475 and ₦1,490 as of January 27. Average buy and sell rates stood at ₦1,480/$ and ₦1,490/$ respectively, pointing to a narrowing gap between official and informal market rates.
The moderation in parallel market rates has been attributed to additional regulatory reforms by the CBN and a noticeable improvement in foreign exchange liquidity.
The naira has carried this momentum into early 2026, building on its 2025 performance when it recorded a decade-high appreciation of between 7 per cent and 9 per cent against the US dollar.
Analysts expect the currency to remain within a relatively stable band in the medium term, with several projections placing the naira between ₦1,400 and ₦1,500 per dollar this year, supported by stronger FX inflows and ongoing macroeconomic reforms.
