Naira Reaches Historic High of ₦1,400 Against US Dollar

The Nigerian naira has achieved a historic milestone, trading at around ₦1,400 to the US dollar in the official market during midweek transactions, continuing a trend of appreciation that gained traction at the beginning of the week.

According to data released by the Central Bank of Nigeria (CBN), the naira appreciated by 1.26 percent on Tuesday, January 27, in the Nigerian Foreign Exchange Market (NFEM), with the dollar priced at ₦1,401.22. This indicated a gain of ₦17.73 from the previous day's rate of ₦1,418.95 on Monday, January 26.

The previous session also saw the naira making significant strides, ending the day at approximately ₦1,401.20 per dollar, its highest value since the implementation of the Electronic Foreign Exchange Matching System (EFEMS).

In recent trading days, the naira has seen gradual daily increases, climbing between 0.1 and 0.36 percent on certain days. Meanwhile, in the parallel market, bureau de change operators in Lagos reported dollar rates ranging from ₦1,475 to ₦1,490 on January 27, with average buying and selling rates recorded at ₦1,480 and ₦1,490 respectively.

Market analysts point to improved foreign exchange liquidity and recent regulatory reforms from the CBN as key drivers behind the enhanced performance in the parallel market.

The naira has maintained its upward trajectory into early 2026, building on the gains of 2025, which marked its strongest performance in over a decade, appreciating between 7 and 9 percent against the US dollar.

Looking ahead, analysts anticipate that the naira will remain within a relatively stable range in the medium term, with many projections indicating it will trade between ₦1,400 and ₦1,500 to the dollar in the coming year, backed by stronger liquidity and macroeconomic reforms.

The Nigerian Economic Summit Group has forecasted that the naira will hover around ₦1,480 per dollar in 2026. Additionally, it predicts a steady increase in Nigeria’s external reserves to approximately $52 billion, driven by the consolidation of recent reforms and ongoing stabilization efforts.