ABUJA, NIGERIA — The Nigerian Naira continued its positive trajectory on Wednesday, January 28, 2026, recording its third consecutive day of appreciation against the United States Dollar in the official market. This trend follows a “milestone” session on Tuesday, where the currency saw its highest gain in months.
The Numbers: Official vs. Parallel Market
According to the latest data from the Central Bank of Nigeria (CBN), the exchange rate settled at ₦1,400.48/$1 on Wednesday, a slight but significant improvement from the ₦1,401.22 recorded on Tuesday.
| Market Segment | Tuesday (Jan 27) | Wednesday (Jan 28) | Performance |
| Official (NFEM) | ₦1,401.22 | ₦1,400.48 | +₦0.74 Gain |
| Black Market | ₦1,490.00 | ₦1,485.00 | +₦5.00 Gain |
What is Driving the Naira’s Recovery?
Market analysts attribute this steady climb to three core factors:
- Surge in Foreign Reserves: Nigeria’s external buffers hit a robust $46.04 billion as of January 26, 2026. This represents a multi-year peak and provides the CBN with the necessary firepower to manage liquidity.
- EFEMS Transparency: The Electronic Foreign Exchange Matching System (EFEMS), introduced in late 2024, has finally matured. It is successfully curbing speculative “panic buying” by ensuring transparent price discovery.
- Cooling Dollar Demand: A relative calm in the informal market has seen the premium between official and black market rates narrow, discouraging the round-tripping that previously devalued the currency.
Investor Outlook
The current stability is fostering renewed confidence. Financial experts from the Nigerian Economic Summit Group (NESG) suggest that if crude oil production remains steady and the CBN maintains its tight monetary policy, the Naira could settle comfortably within the ₦1,350 – ₦1,450 band by the end of Q1 2026.
