The Nigerian naira extended its recent rally on Wednesday, closing at N1,341.99 per US dollar in the official foreign exchange market — its strongest level since February 18, 2026, when it traded at N1,340 per dollar.
According to data from the Central Bank of Nigeria (CBN) published on April 16, 2026, the local currency appreciated steadily throughout the week, moving from N1,358 on Monday to N1,348 on Tuesday before closing at N1,341.99 on Wednesday.
On a week-on-week basis, the naira improved from N1,369 recorded on Wednesday, April 8, reflecting renewed short-term confidence in the currency despite mixed macroeconomic signals.
The performance comes against the backdrop of a softer US dollar globally. The greenback has been hovering near recent lows as investor sentiment improves on expectations of renewed peace talks between the United States and Iran. A potential de-escalation in the Middle East conflict has supported risk appetite and reduced demand for the dollar as a safe-haven asset.
Nigeria’s external reserves, however, continued to face pressure, declining to $48.72 billion as of April 13, 2026, from $49.18 billion at the start of the month.
The recent appreciation of the naira suggests that easing geopolitical tensions and a weaker dollar are providing some support to the local currency. However, analysts caution that the sustainability of these gains will depend on the durability of the ceasefire, trends in global oil prices, and the CBN’s ongoing efforts to manage liquidity and defend the exchange rate.
On the domestic front, the International Monetary Fund (IMF) recently revised Nigeria’s 2026 growth forecast downward from 4.4% to 4.1%, while headline inflation edged slightly higher to 15.38% in March from 15.06% in February. These indicators highlight the persistent macroeconomic challenges the country continues to navigate.
The CBN has projected that external reserves will rise to $51.04 billion in 2026 from $45.01 billion in 2025, supported by higher oil earnings, sovereign bond issuances, and increased diaspora remittances.
For now, the naira’s strengthening to its best level in nearly two months offers a welcome breather for the currency, but market participants remain watchful of both global developments and domestic policy responses in the weeks ahead.
