The naira continued its appreciation against the United States dollar at the official foreign exchange market on Wednesday, sustaining the positive momentum recorded earlier in the week.
Data released by the Central Bank of Nigeria (CBN) showed that the local currency strengthened slightly to close at N1,418.26 per dollar on Wednesday, compared with N1,419.07 recorded on Tuesday. This represents a marginal day-to-day gain of N0.80 at the official window.
Although modest, the continued appreciation signals a measure of stability in the official market, following stronger gains earlier in the week. On Tuesday, the naira had posted a more significant improvement, appreciating by N10.24 against the dollar, raising optimism among market watchers about short-term currency movements.
In contrast, the parallel market remained unchanged. The naira traded flat at N1,480 per dollar on Wednesday, maintaining the same rate recorded the previous day. The persistent gap between the official and black-market rates continues to reflect underlying supply and demand pressures in the foreign exchange market.
The currency movement comes amid an improvement in Nigeria’s external buffers. The country’s foreign exchange reserves rose further to $45.62 billion as of January 6, 2026, providing additional support for the naira and strengthening the Central Bank’s capacity to intervene in the market when necessary.
Analysts note that rising reserves, combined with recent policy measures by the CBN, have contributed to improved confidence in the official foreign exchange market. However, they caution that sustained gains will depend on consistent FX inflows, stable oil revenues, and continued reforms aimed at deepening market transparency.
While the naira’s performance at the official window shows signs of gradual strengthening, market participants will be watching closely to see whether the trend can be maintained and eventually narrow the gap with the parallel market in the coming weeks.
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