Naira Extends Gains Against US Dollar As Experts Predict New Exchange Rate for 2026
- The naira for the second day in a row improved against major currencies in the official market
- The latest movement is supported by CBN interventions and improved liquidity from exporters and investors
- Experts have projected a new exchange rate for naira in 2026 and has provided reasons
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has strengthened against major currencies on Tuesday, December 23, extending its recent gains despite a sharp decline in foreign exchange (FX) inflows.
At the Nigerian Foreign Exchange Market (NAFEM), the naira rose by N6.57, or 0.45%, to N1,449.99 per US dollar from Monday’s N1,456.56.
Source: Getty Images
While in the official market, the currency also gained N1.30 against the British Pound to N1,956.03/£1 and rose N2.94 against the euro to N1,707.65/€1.
At commercial bank FX counters, the naira also appreciated by N5 to N1,465/$1, while trading remained flat at N1,485/$1 in the parallel market.
Market operators attributed the gains to increased FX supply in the official window, supported by sustained interventions from the CBN and recent economic reforms.
Improved liquidity from exporters and foreign portfolio investors further eased pressure on the local currency, helping stabilise trading conditions during the holiday season.
Analysts noted that the naira’s gains have narrowed the gap between official and parallel market rates, boosting investor confidence and enabling more orderly price discovery.
FX inflows into Nigeria
BusinessDay reports that FX inflows into the NAFEM window fell sharply by 49.3 percent to US$741 million, down from US$1.46 billion the previous week, with the apex bank accounting for 27.73% of total inflows.
Exporters contributed 24.52 percent, foreign portfolio investors 24.23%, non-bank corporates 13.78 percent, individuals 7.37%, and other sources 2.37%.
Also, data showed that CBN’s gross external reserves also saw a marginal dip of 0.58%, equivalent to $263.15 million, to $45.21 billion as of December 19, before rebounding slightly to $45.23 billion on December 22.
Source: Getty Images
Naira outlook for 2026
Looking ahead, analysts at SBM Intelligence expect the Naira to trade within a relatively narrow band of N1,470 to N1,520 per dollar in 2026.
Also, Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said the currency’s outlook depends on domestic and external factors.
Yusuf said:
“Assuming current conditions hold and reserves remain stable, the Naira could trade between N1,400 and N1,500 per dollar."
Top bank predicts dollar exchange rate in 2026
Earlier, Legit.ng reported that the Naira is projected to weaken to between N1,650 and N1,700 by mid-2026, due to expected pressure from lower crude oil prices and a new monetary easing cycle.
This is the view of David Cowan, Citibank’s African economist, in a note to clients.
Cowan linked the outlook to the CBN’s anticipated monetary easing and a possible decline in crude oil prices.
Source: Legit.ng
