KEY POINTS
- The naira appreciated to N1,355/$, its strongest level since February 2026.
- Rising external reserves and stronger oil earnings are driving the recovery.
- Ongoing CBN reforms and positive reserve projections signal continued currency stability.
The Nigerian naira sustained its appreciation at the official foreign exchange market, closing at N1,355 per dollar on Monday, its strongest performance since February 23, 2026.
This marks a notable improvement from its previous close of N1,363.5 per dollar on Friday, signaling renewed stability in the currency market.
Data from the Central Bank of Nigeria attributes the naira’s recent gains to relatively stable market conditions and a steady rise in the country’s external reserves.
By the end of 2025, reserves had reached $34.80 billion, while gross external reserves climbed further to $50.45 billion as of February 2026. This growth has been largely supported by improved oil revenues and increased foreign capital inflows.
Reforms Boost Market Confidence and Liquidity
The apex bank’s ongoing monetary and foreign exchange reforms have also played a key role in strengthening investor confidence and improving liquidity within the market. These policy measures are aimed at stabilising the currency and ensuring a more transparent and efficient forex system.
Looking ahead, the Central Bank projects that Nigeria’s external reserves could rise to $51.04 billion in 2026. This optimistic outlook is anchored on expectations of sustained higher oil earnings and continued inflows from foreign investors, which could further support the naira’s upward trajectory.
