Naira Gains 0.5% to Close Week at N1,417 Per Dollar as Nigeria’s External Reserves Rise
- The naira strengthened against the US dollar in the official market, supported by steady gains in Nigeria’s external reserves
- Analysts noted that the narrowing gap between official and unofficial rates reflects improved FX transparency and policy credibility
- They also raised optimism that, despite CBN projections that Nigeria's external reserves could rise above $51 billion next year
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The naira finished the week (Friday, January 16, 2026) on a positive footing, settling at N1,417.95 to the dollar in the official foreign exchange (FX) market, buoyed by continued growth in Nigeria’s external reserves.
Figures from the Central Bank of Nigeria (CBN) indicated that the currency appreciated by 0.5% on a week-on-week basis, strengthening by N6.55 from the N1,424.50 recorded at the close of trading the previous Friday (January 9) at the Nigerian Foreign Exchange Market (NFEM).
Source: UGC
On a daily basis, the naira also advanced by N2.05, improving from N1,420.00 on Thursday (January 15) to N1,417.95 on Friday. Over the five trading days of the week, the local currency gained a total of N7.05, rising from N1,425.00 quoted on Monday (January 11).
Meanwhile, activity in the parallel market remained subdued, with the naira trading flat at N1,490 per dollar throughout the week.
Rising reserves and policy outlook
Nigeria’s external reserves maintained their upward trend, increasing by 0.4% week-on-week to $45.86 billion as of Thursday, January 15, 2026, compared with $45.66 billion a week earlier.
In its 2026 macroeconomic outlook, the Nigerian Economic Summit Group (NESG) observed that the country’s reserves are at their highest level in several years, alongside a notable narrowing of the gap between official and parallel market exchange rates.
The group attributed this progress to enhanced transparency in FX operations and growing confidence in policy direction.
NESG advised authorities to sustain FX market liberalisation through consistent communication, transparent FX auctions and closer coordination with banks and development finance institutions, noting that such measures would further support currency stability.
The group added that better FX availability would benefit the manufacturing sector, which depends heavily on imported inputs, by reducing exchange-rate volatility and improving access to critical materials.
However, NESG warned that vulnerable inflows underpin recent FX improvements. A potential downturn in global oil prices in 2026, due to an expected supply glut, could weaken export revenues and renew pressure on the naira, raising the cost of imports.
The CBN, for its part, expressed optimism that ongoing reforms would help preserve exchange-rate stability and bolster reserves.
The apex bank projects external reserves to rise to about $51.04 billion in 2026, up from an estimated $45.01 billion in 2025, driven by easing foreign exchange pressures, improved oil receipts, sovereign bond issuance, and stronger diaspora remittance inflows.
Source: UGC
CBN sells $81 million to BDCs
In related news, Legit.ng reported that the CBN released $81 million to Bureau De Change operators, continuing efforts to ease pressure on the foreign exchange market.
This follows an earlier $18 million injection aimed at supporting the naira as volatility resurfaced in the official market.
Economists say the latest allocation should help improve market confidence and provide short-term stability for the currency.
Source: Legit.ng
