Naira Appreciates by N27 Against US Dollar As External Reserves Cross $50bn
- The naira appreciated by N27.03 week-on-week to N1,366.23/$1 in the official market
- The improvement for the is supported by improved foreign exchange liquidity in the market
- Nigeria’s external reserves has also crossed $50 billion providing about 9.68 months of import cover
Legit.ng journalist Dave Ibemere has business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira has strengthened against the United States dollar in the official market during the week as market condition improved in the country’s foreign exchange market.
Data released by the Central Bank of Nigeria (CBN) showed that the local currency appreciated by N27.03 week-on-week, representing a 1.98% gain.
Source: Getty Images
The naira closed at N1,366.23 per dollar on Friday, compared with N1,393.26 recorded the previous Friday.
On a day-on-day basis, the currency also posted a modest gain, strengthening by N5.28 or 0.4% from N1,371.51 per dollar quoted on Thursday.
Across the five trading sessions of the week, the naira appreciated by N39.39 or 2.88%, rising from N1,405.62 per dollar on Monday, the first trading day of the week.
Naira to dollar black market
In the parallel market, commonly referred to as the black market, the naira ended the week at N1,410 per dollar on Friday. This represented a gain of N10 or 0.71% week-on-week from N1,420 per dollar recorded at the close of the previous week.
On a day-on-day basis, the parallel market rate remained broadly stable, though the gap between the official and parallel market exchange rates widened during the week.
The spread expanded to N44 on Friday compared with N27 recorded in the previous week.
BusinessDay reports that the improved performance in the official market came amid rising foreign exchange liquidity and renewed confidence following sustained growth in the country’s external reserves.
The CBN’s resumption of dollar sales into the market alongside sustained growth in the country’s external reserves.
Nigeria's foreign reserves continued their upward trajectory during the week, crossing the $50 billion threshold.
The reserves rose to $50.45 billion, representing a 0.24% increase compared with $49.90 billion recorded in the previous week, according to figures published on the CBN’s website.
The rising reserve level has strengthened the country’s foreign exchange buffers and improved liquidity in the currency market.
Source: Getty Images
Olayemi Cardoso, governor of the Central Bank of Nigeria, said recent improvements in the foreign exchange market reflect the outcome of deliberate policy measures aimed at restoring confidence and improving transparency.
Cardoso said:
The foreign exchange market now operates with significantly stronger liquidity and efficiency, with previously outstanding demand largely cleared, allowing participants to conduct transactions without depending heavily on special interventions by the central bank.
He added that Nigeria has experienced a notable rise in foreign investment inflows in recent years.
According to him, capital and investment inflows into the country increased by nearly 200% between 2023 and 2025.
He explained that the current stability of the naira is the result of deliberate policy actions aimed at rebuilding trust and boosting confidence among both local and international investors.
Expert predicts new naira to dollar exchange rate in 2026
Earlier, Legit.ng reported that the naira is projected to trade between N1,350 and N1,450 per US dollar in 2026.
Yemi Kale, Chief Economist at the Africa Export-Import Bank (Afreximbank), made the projection while delivering the keynote address at the FirstBank Nigeria Economic Outlook 2026.
Kale outlined scenario-based forecasts for the USD/NGN exchange rate, taking into account oil prices, foreign-exchange (FX) inflows, inflation trends, and policy consistency.
Source: Legit.ng
