Naira Drops to N1,419 Amidst Broad Stability Projection
The naira weakened marginally against the US dollar at the official window on Thursday, depreciating by N1.45/US$ to close at N1,419.71/US$ compared with N1,418.26/US$ previously recorded.
Based on data from the Central Bank of Nigeria (CBN), the naira largely traded within the low and high bands of N1,418.00/US$ and N1,422.00/US$, respectively.
The market expects the naira to continue trading in line with prevailing market demand and supply conditions, supported by improving external reserves position.
In a 2026 report, PwC expects the naira to remain broadly stable through 2026, underpinned by ongoing CBN reforms and improved portfolio inflows
Naira recorded gain in 2025 and analysts have built their forex market projection on expectation that the CBN will continue to defend exchange rate stability in 2026. This expectation was anchored on rising external reserves balance, supress by oil market risks.
Uncertainties around oil projection will continue into the year, analysts said. Geopolitical tensions remain elevated, contributing to oil price volatility and uncertainty around energy supply and trade routes.
Oil prices are projected to soften toward the US$55 per barrel range in 2026, weakening Nigeria’s fiscal revenues and FX inflows. PwC said in its 2026 outlook report that political instability and coups across West Africa, alongside potential sanctions and border restrictions, may disrupt regional trade, raise risk premia, and reinforce Nigeria’s external vulnerability.
In the parallel market, the naira popped to N1,465 per dollar, reflecting divergent currency dynamics and contrasting pressures across the regulated official segment and the informal foreign exchange market.
In the global commodity market, prices of crude oil climbed sharply on Thursday. Benchmark Brent crude was trading up 2.02% at $61.17, while U.S. WTI was up 1.95% at $57.05, reflecting renewed buying interest and a risk premium relating to Venezuela’s oil sector and associated geopolitical tensions. Naira Climbs to N1,418 as Foreign Reserves Hits $45.623bn
