The Nigerian naira has strengthened below N1,400 per US dollar on the official market for the first time in over a year—a significant milestone that reflects growing stability in the foreign exchange system. According to Central Bank of Nigeria (CBN) data, the Nigerian Foreign Exchange Market (NFEM) rate closed at N1,396.99/$1 on Thursday, January 30, 2026, up from N1,400.48/$1 the previous day.
This marks the naira’s return beneath the N1,400 psychological threshold after months of trading above it. Intraday, the currency even touched a high of N1,367/$1 before settling at N1,385/$1 in closing trades—capping a steady week of gains. Earlier in the week, the NFEM rate stood at N1,422.07/$1 on January 22, but consistent improvement followed: N1,418.95/$1 on Monday, N1,401.22/$1 on Tuesday, and N1,400.47/$1 on Wednesday.
The momentum extended to the parallel market as well. Cowry Asset Management Limited reported that the naira appreciated by 1.06% there, trading at N1,454/$1. Analysts attribute this synchronized strengthening to improved dollar supply and rising confidence in the official window. “Currency sentiment is improving across both the regulated official segment and the informal foreign exchange market,” Cowry noted.
Tilewa Adebajo, CEO of CFG Advisory, highlighted another encouraging sign: the narrowing gap between official and street rates. “Using today’s midpoints, the premium of the parallel market over the official rate is roughly 6–7%,” he said. This is a dramatic improvement from 2022, when the spread exceeded 64%. By 2026, consistent policy efforts appear to have brought the two markets closer together.
Analysts had anticipated this move. Forecasts earlier in the week pointed to a stable trading range driven by FX liquidity and supply conditions. The sustained inflow of dollars—likely from oil revenues, diaspora remittances, and CBN interventions—has eased pressure on the naira.
The naira strengthens below N1,400 trend suggests that Nigeria’s forex reforms are gaining traction. A tighter spread reduces arbitrage opportunities, discourages speculative trading, and supports price discovery. For importers and businesses, it also means more predictable conversion costs and reduced hedging risks.
However, experts caution that sustainability depends on continued dollar supply and disciplined monetary policy. Any shock to oil production or external reserves could reverse gains quickly. Still, for now, the naira’s performance offers a rare moment of optimism in Nigeria’s volatile currency landscape.
As the local unit holds firm below N1,400, market watchers will monitor whether this level becomes a new floor—or just a temporary reprieve in a longer journey toward true forex stability.
READ: Government Borrowing Crowds Out Private Sector Credit in 2025
