Nigeria’s naira has recorded a significant psychological and market milestone after trading below the N1,400/$1 mark on the official foreign exchange market for the first time in over a year.
Data from the Central Bank of Nigeria (CBN) show that the Nigerian Foreign Exchange Market (NFEM) rate strengthened to N1,396.99/$1 on Thursday, improving from N1,400.48/$1 on Wednesday. The development confirms the naira’s return below the N1,400/$1 threshold after months of sustained trading above that level.
Intraday trading saw the local currency fluctuate between a high of N1,400/$1 and a low of N1,367/$1, before closing at N1,385/$1, extending a steady appreciation trend recorded throughout the week.
The naira had previously weakened to N1,422.07/$1 on January 22 and N1,421.63/$1 on January 23, before gradually strengthening to N1,418.95/$1 on Monday, N1,401.22/$1 on Tuesday, and N1,400.47/$1 on Wednesday. The latest move below N1,400/$1 therefore marks a clear improvement in official market pricing and sentiment.
The appreciation was also reflected in the parallel market. According to Cowry Asset Management Limited, the naira strengthened by 1.06 per cent to N1,454/$, indicating improved confidence across both the official and informal foreign exchange segments.
Commenting on the currency performance, Tilewa Adebajo, Chief Executive Officer of CFG Advisory, noted a narrowing gap between official and parallel market rates.
“Using the midpoints of today’s quoted ranges, the premium of the parallel market over the official rate is roughly 6–7 per cent. Official and parallel premium spreads have dropped from 64 per cent in 2022 to about seven per cent in 2026,” he said.
Financial analysts attribute the recent stability to improved FX supply conditions and liquidity dynamics within the official market, which have supported the naira’s recovery.
Thursday’s performance extends the positive momentum for the local currency and signals renewed confidence in Nigeria’s foreign exchange market, as policymakers and investors monitor sustainability of the trend in the coming weeks.
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