Naira could finally get a boost in 2026. CardinalStone predicts it may reach ₦1,350–₦1,450/$.
This rise comes as Nigeria’s economy strengthens, supported by improving fundamentals and a calmer FX environment.
Naira Set To Strengthen
Inflation has troubled households, energy prices have fluctuated, and global oil shocks have pressured the currency.
However, policy reforms, better FX liquidity, and moderating inflation may stabilise the Naira next year.
“We expect the Naira to appreciate to ₦1,350–₦1,450/$ in 2026,” the report stated.
Energy And Inflation Relief
Meanwhile, global crude oil markets may remain weak because of oversupply and subdued demand.
Structural improvements in the FX market could cushion Nigeria against lower oil revenues.
Consequently, a stronger Naira may bring lower domestic energy costs, including AGO and PMS prices.
Competition between local refineries and fuel importers also strengthens stability in the energy market.
Read Also: CardinalStone Sees Oil At $55 A Barrel In 2026
“Competition in the domestic market bodes well for energy price stability,” the report noted.
Inflation may gradually ease, although rising insecurity could disrupt food supply in key regions.
Pre-election spending may add pressure, yet headline inflation could average 15.5% in 2026.
By year-end, inflation may fall to 13.9%, easing cost pressures for households and businesses.
A stronger Naira and falling inflation could stabilise purchasing power and reduce imported price shocks.
Furthermore, lower energy prices would ease transport and manufacturing costs across the economy.
Risks And Outlook
Nigeria’s FX reforms and currency devaluation have caused volatility in recent years.
Households and businesses have faced higher costs due to weak Naira, rising food prices, and energy expenses.
Still, insecurity, domestic instability, and volatile oil markets remain key risks, underscoring the need for reforms.
Global oil prices may average $55.08 per barrel in 2026, supporting FX earnings and broader recovery.
Ultimately, CardinalStone’s outlook suggests that with careful policy and stability, 2026 could mark a turning point for Nigeria’s economy.
