Naira Appreciates by 0.25% in One Week Against US Dollar
- The naira recorded an appreciation against the US dollar in the last trading week in the official market
- Analysts say the modest gains reflect steadier liquidity and reduced volatility in the market
- Although they warn that sustaining the naira’s recovery will depend on continued foreign currency inflows
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 strengthened against the U.S. dollar over the past week at the Nigerian Foreign Exchange Market (NFEM), extending its strong performance in 2026.
Data obtained from the Central Bank of Nigeria showed that the Nigerian currency appreciated to N1,417.95/$ on January 16, 2026 from N1,421.46/$ on January 12 it opened the week.
The movement of the naira represents a gain of N3.51, or about 0.25%, over the five trading sessions.
Source: Getty Images
The improvement was driven by increased dollar supply, which kept trading within a narrow range, as inflows from exporters, importers, and non-bank corporates boosted liquidity, even though the Central Bank of Nigeria (CBN) made no visible intervention.
How the naira performed during the week?
At the start of the week, the naira closed at N1,425/$ on January 12. By midweek, the currency had firmed slightly, closing at N1,420.25/$ on January 13 and N1,419.50/$ on January 14, before settling at N1,420/$ on January 15.
The week ended with the naira closing lower at N1,417.95/$, its strongest level during the period.
Chukmeke Alozie a financial market analyst attributed the naira’s performance to improved liquidity at the NFEM.
He said:
"The naira continue to be supported by the reforms in the foreign exchange market. The narrowing gap between the highest and lowest rates indicates reduced speculative pressure and better price discovery."
Alozie however cautioned that the naira remains vulnerable to shifts in dollar inflows, particularly from oil exports and portfolio investments. Import demand and seasonal pressures could also test the currency in coming weeks.
Naira at the black market and other currencies
It was a similar performance for the naira in the black market as traders told Legit.ng that the dollar fell by N5 during the week.
Abdullahi a BDC trader said:
“At the start of Monday, I sold dollars at around N1,485, but by Friday the rate had eased to about N1,480. I even offered lower rates to customers who needed $10,000.”
Source: Getty Images
Here is the closing rate of naira in the official market of other currencies.
- CFA: N2.51
- Yuan / Renminbi: N203.42
- Danish Krona: N220.49
- Euro: N1,647.51
- Yen: N8.97
- Riyal: N378.11
- South African Rand: N86.41
- Swiss Franc: N1,768.68
- Pounds Sterling: N1,901.33
- US Dollar: N1,417.95
FX reserves drop
Earlier, Legit.ng reported that data from the Central Bank of Nigeria (CBN) shows that reserves dropped to $45.32 billion on 15 December from $45.47 billion previously.
The decline continued, falling to $45.27 billion before a further day-on-day reduction of $57.05 million brought reserves to $45.21 billion as of 17 December 2025.
This lowered the year-to-date gain to 10.60%
Source: Legit.ng
