Experts Predict New Naira to Dollar Exchange Rate by December 2026
- Analysts from four investment firms forecast the naira will strengthen to around N1,290 per dollar before the end of 2026
- Nigeria's external reserves climbed to an 18-year high of $53.99 billion, giving the CBN more room to defend the currency
- Formal remittance inflows through IMTOs reached a record $947 million in July, approaching the CBN's monthly target of $1 billion
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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 is on course for its best annual performance in at least eight years, with an average forecast from four investment firms pointing to a rate of about N1,290 per dollar by the end of 2026.
The currency currently trades at N1,328.92 in the official foreign exchange market. on Thursday, September 3.
If the projected level holds, the naira would have gained roughly 12% over the full year, surpassing the approximately 8% gain already recorded since January.
Source: Getty Images
What are Analysts forcast about naira
Forecasts across the four firms span a range of N1,200 to N1,350 per dollar. CardinalStone puts its estimate at around N1,310, while Zedcrest Capital projects approximately N1,300.
Cordros Securities expects a range of N1,250 to N1,350, and MDU Capital offers the most optimistic view, forecasting a range of N1,200 to N1,300 per dollar, BusinessDay reports.
Analysts point to firmer foreign exchange liquidity, rising oil revenues and growing remittance inflows as the key forces behind the naira's recent resilience.
On Thursday, the naira closed at N1,315.67 per dollar in the official market, gaining N11.02, or 0.84%, from the N1,326.69 recorded the previous day. Interbank turnover climbed 62.33% to $152.04 million, with the number of deals rising from 105 to 153.
Reserves, Remittances and Oil
Nigeria's external reserves reached $53.99 billion as of September 2, their highest level in 18 years, giving the Central Bank of Nigeria (CBN) greater capacity to manage the foreign exchange market.
In August, the naira appreciated 1.5% in the official market, while overall foreign exchange turnover rose to $14.68 billion, its highest in five months.
Remittance flows have added further support. Inflows through International Money Transfer Operators reached $947 million in July, the largest single-month figure recorded through formal channels.
Over the first seven months of 2026, IMTO inflows totalled $3.8 billion, a 50.2% increase compared with the same period in 2025.
CBN Governor Olayemi Cardoso credited regulatory reforms for the improvement, including changes to the IMTO framework and the introduction of the Non-Resident Bank Verification Number.
Cardoso said:
"When we set a clear ambition to reach $1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming.
"At $947 million in July, we are now approaching that milestone."
Average Brent crude prices also rose 5% to $87.26 per barrel in August, briefly crossing $90 amid Middle East tensions. System liquidity grew 56.17% to N4.65 trillion during the same month.
Source: Getty Images
Parallel Market Gap Widens
The naira's gains in the official market have not been matched in the parallel market, where the currency held around N1,400 per dollar on Thursday.
That left the gap between the two rates at 6.46%, up from 4.63% the day before.
SEC releases new rules for forex trading
Earlier, Legit.ng reported that the Securities and Exchange Commission (SEC) has proposed sweeping new rules to govern online foreign exchange and Contracts for Difference (CFD) trading in Nigeria, covering everything from how brokers are licensed to how they advertise their services and protect client money.
The proposed framework, which is not yet in force, would apply to operators offering these services to Nigerian residents.
It could also extend to offshore platforms that target Nigerians through local advertising, influencers or affiliate partnerships.
Source: Legit.ng
