Nigeria’s naira has traded below the N1,400/$1 level on the official market for the first time in over a year, marking a notable psychological and market milestone for the currency.
Data from the Central Bank of Nigeria show that the Nigerian Foreign Exchange Market rate, the determining benchmark for the official market, strengthened to N1,396.99/$1 on Thursday, up from N1,400.48/$1 on Wednesday. This move confirms the naira’s return below N1,400/$1 after an extended period of trading above that level.
Intraday trading on Thursday saw the naira reach a high of N1,400/$1 and a low of N1,367/$1 before closing at N1,385/$1. The latest outcome caps a steady appreciation trend over the week.
The NFEM rate had been as weak as N1,422.07/$1 on 22 January and N1,421.63/$1 on 23 January before easing to N1,418.95/$1 on Monday and N1,401.22/$1 on Tuesday. It improved to N1,400.47/$1. The break below N1,400/$1 on Thursday, therefore, represents a clear improvement in official market pricing.
At the parallel market, the naira also appreciated. According to Cowry Asset Management Limited, the naira strengthened by 1.06 per cent to N1,454/$ in the parallel market, “reflecting improved currency sentiment across both the regulated official segment and the informal foreign exchange market.”
Speaking on the performance of the naira, the Chief Executive Officer of CFG Advisory, Tilewa Adebajo, highlighted the closing in the spread between the 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.” Looking further back, Adebajo said, “Official and parallel premium spreads have dropped from 64 per cent in 2022 to seven per cent in 2026.”
The PUNCH reported that financial analysts had projected that the naira would trade within a predictable range this week, with movements largely dictated by FX supply conditions and liquidity dynamics in the official market.
Thursday’s trading rate has extended the positive streak for the local currency seen across the different segments of the market.
