The Central Bank of Nigeria (CBN), led by Olayemi Cardoso, has recently implemented key reforms that have positively impacted the naira, which is trading below N1,400/$1 on the official market—a psychological milestone for the currency. The naira strengthened to N1,396.99/$1 on Thursday, a significant recovery from earlier rates of N1,422.07/$1 in January.
Foreign capital inflows have surged, reaching $20.98 billion in the first ten months of 2025, marking a 70% increase from the previous year. This rise reflects growing investor confidence in Nigeria’s economic potential.
Key Highlights:
- Oil Prices: Brent crude rises to $69.34 per barrel; geopolitical concerns driving prices.
- Naira Performance: Strengthened to N1,396.99/$1; first time below N1,400 in over a year.
- Foreign Reserves: Increased to $46.11 billion as of January 2026, marking significant growth since late 2024.
Market Implications:
Analysts believe that continued improvements in foreign reserves and the naira’s resilience could enhance Nigeria’s economic stability leading into the general elections. However, sustaining this momentum will depend on effective fiscal discipline and ongoing reforms.
The CBN is optimistic about the naira’s long-term value, suggesting an appropriate exchange rate of around N1,256.79 to the US dollar based on purchasing power parity. Further improvements in non-oil exports and macroeconomic indicators support this positive outlook.
