The naira is showing signs of recovery, steadily gaining against the U.S. dollar in the second trading week of 2026.
Meanwhile, traders and analysts welcomed this as a positive signal of improving foreign exchange fundamentals and growing confidence in Nigeria’s external position.
Naira Shows Early Recovery
By Friday, the naira traded at ₦1,424.5/$, rising from ₦1,431/$ at the close of the previous week.
Compared to ₦1,544.5/$ at the same point last year, the currency is gradually regaining value.
During the week, trading remained calm: the naira quoted ₦1,428/$ on Monday, ₦1,416/$ on Tuesday, and ₦1,421/$ midweek, before finishing stronger on Friday.
Reserves Support Stability
Small but steady gains in Nigeria’s foreign exchange reserves strengthened the naira.
Reserves increased to $45.62 billion on Tuesday, up from $45.60 billion on Monday, which reassured investors.
Looking ahead, the Central Bank of Nigeria expects reserves to reach $51 billion by the end of 2026.
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The bank highlighted higher oil earnings, increased diaspora remittances, planned sovereign bond sales, and expanding domestic refining capacity as key drivers.
Consequently, the country could reduce fuel imports, lowering foreign exchange demand over time.
Positive Outlook For 2026
Economists noted that the naira’s recent stability reflects improved liquidity and better alignment between supply and demand.
According to Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise, consistent policies and ongoing FX market reforms will remain essential to sustain gains.
Overall, the naira is quietly regaining strength, giving hope for steadier and more confident performance throughout 2026.
