The Nigerian naira on Tuesday recorded its highest appreciation against the United States dollar at the official foreign exchange market, marking a significant improvement in the country’s currency performance.
Data obtained from the Central Bank of Nigeria (CBN) showed that the naira strengthened to N1,401.22 per dollar on Tuesday, improving from N1,418.95 recorded on Monday. This represents a day-on-day gain of N17.73, equivalent to a 1.27 percent appreciation, making it the strongest single-day gain since October last year.
The notable appreciation reflects growing stability in Nigeria’s foreign exchange market amid ongoing reforms and improved dollar inflows. Analysts say the development signals renewed confidence in the official FX window, which has witnessed increased activity in recent weeks.
In contrast, the naira remained unchanged at the parallel market. Currency traders quoted the local unit at N1,490 per dollar on Tuesday, the same rate it traded the previous day. This stability suggests a narrowing volatility gap between the official and black markets, a development that market watchers believe could improve transparency and reduce speculative pressures.
The sustained strengthening of the naira at the official market has been largely attributed to the continuous growth in Nigeria’s foreign reserves. According to the CBN, the country’s external reserves rose to $46.04 billion as of January 26, 2026, providing stronger backing for the local currency and enhancing the central bank’s ability to manage liquidity in the FX market.
Economic observers note that rising reserves, improved export earnings, and tighter FX management policies are beginning to yield positive results. However, they caution that sustained gains will depend on consistent policy implementation, increased foreign investment inflows, and continued diversification of the economy.
The recent performance of the naira has renewed optimism among businesses and investors, who hope the trend will translate into reduced import costs and improved macroeconomic stability.
