By: ThinkBusiness Africa
The Nigerian Naira has surged to a record high for 2026, closing at N1,401/$1 in the official market on Wednesday. The rally comes as the US Dollar experiences a global cooldown, providing a window for the Central Bank of Nigeria (CBN) to consolidate recent currency reforms.
Since the beginning of January 2026, the Naira has gained approximately 2.7% against the greenback. This performance marks a departure from the volatility seen in 2024 and 2025, signaling a transition from “emergency intervention” to “market-driven stability.”
Economic analysts attribute this “Naira advantage” to a combination of internal policy success and external market shifts:
The Electronic Foreign Exchange Matching System (EFEMS), which became fully operational in late 2024, has finally reached peak efficiency. By automating price discovery and curbing speculative “hoarding,” the platform has reduced the daily price swings that previously plagued the market.
Nigeria’s external reserves have crossed $46 billion for the first time in eight years. The CBN has set an ambitious target of $51.04 billion by year-end, bolstered by steady oil production at 1.71 million barrels per day (mbpd).
The CBN has maintained a “hawkish” stance, keeping the Monetary Policy Rate (MPR) between 20% and 22%. These high rates make Naira-denominated assets more attractive to foreign portfolio investors (FPIs).
As the US Federal Reserve adjusts its stance on inflation, the global “DXY” Dollar Index has softened, easing the repayment burden on Nigeria’s dollar-denominated debts and reducing imported inflation.
The CBN’s 2026 Macroeconomic Outlook remains “cautiously optimistic.” With inflation projected to moderate toward 12.94% by year-end (down from the highs of 2024), the current stability of the Naira is viewed as the “anchor” for broader economic recovery.
