Naira Hits New High in Official Window as External Reserves Rise
- Naira appreciates to ₦1,401.22 per dollar, marking its best performance since FX reforms began
- Improved liquidity and rising external reserves bolster confidence in Nigeria's FX market
- Global oil price softening could pose revenue risks, yet stronger naira offers temporary relief
Nigeria’s naira recorded one of its strongest performances in months on Tuesday, January 27, 2026, appreciating sharply against the US dollar at the official foreign exchange window amid improving liquidity and rising confidence in the country’s FX reforms.
The local currency strengthened to around ₦1,400 per dollar at the official market, marking its firmest level since the Central Bank of Nigeria (CBN implemented sweeping FX reforms.
Source: Getty Images
The move signals easing pressure on the naira and renewed optimism among investors and market participants.
Naira posts strongest official-market gain
According to the CBN’s daily foreign exchange report, the naira closed at ₦1,401.22 per dollar, representing a 1.27 percent appreciation on the day.
Market operators described the move as a reflection of improved dollar supply and stronger participation by banks and other authorised dealers.
Traders said the official window saw increased volumes, with the improved liquidity helping to narrow volatility and reduce speculative demand.
The latest performance reinforces the view that the reforms aimed at unifying exchange rates and improving price discovery are beginning to yield results.
Parallel market also sees relief
The positive momentum extended to the parallel market, where the naira also posted modest gains. Channel checks showed the local currency appreciating by about 0.33 per cent to trade around ₦1,476 per dollar.
While the gap between the official and parallel rates remains, analysts say the narrowing spread reflects improving confidence across both the regulated and informal segments of the FX market.
According to a report by MarketForces Africa, reduced arbitrage opportunities and stronger supply conditions are helping to stabilise pricing.
Reserves growth boosts market sentiment
The naira’s rally comes against the backdrop of rising external reserves, which have strengthened the CBN’s ability to intervene when necessary and support market liquidity.
Higher reserves are widely viewed as a key confidence signal for foreign investors, particularly portfolio investors who remain sensitive to currency risk.
Source: Getty Images
Market watchers say consistent inflows from export earnings, improved remittance flows, and cautious monetary management have all contributed to the improved outlook for the naira in recent weeks.
Oil prices ease, supply fears grow
Meanwhile, global oil prices softened on Tuesday, as investors weighed the prospects of increased crude supply in the international market.
April Brent crude futures fell 0.69 per cent to $64.32 per barrel, while March West Texas Intermediate (WTI) declined 0.64 per cent to $60.27.
The pullback follows expectations of higher output after reports from Kazakhstan’s Tengizchevroil project and US energy giant Chevron pointed to rising production levels.
For Nigeria, softer oil prices could pose revenue risks, though analysts note that improved FX management may help cushion the impact in the near term.
Outlook: Cautious optimism builds
Despite lingering structural challenges, the naira’s latest performance suggests that confidence is gradually returning to Nigeria’s foreign exchange market.
Analysts caution that sustaining the gains will depend on consistent policy implementation, continued reserve accretion, and stable macroeconomic conditions.
For now, the stronger naira offers a rare moment of relief for businesses, investors, and consumers grappling with currency volatility, and may signal a turning point if supportive conditions persist.
GTBank confirms new exchange rate
Legit.ng earlier reported that the naira weakened against major foreign currencies in the official market on Monday, January 19, pressured by stronger demand and limited dollar supply in the absence of visible intervention by the Central Bank of Nigeria (CBN).
Data from the Nigerian Foreign Exchange Market (NAFEX) showed the naira fell by N2.33, or 0.16 per cent, to close at N1,420.28 per dollar, compared with N1,417.95 recorded in the previous session.
The Nigerian currency also depreciated against the British pound, losing N4.56 to settle at N1,905.80 per pound, while it declined by N5.27 against the euro to close at N1,652.78.
Source: Legit.ng
