Nigeria’s naira is expected to remain broadly stable in 2026 after posting its first annual gain in 13 years, offering a rare note of optimism after a turbulent reform period. According to a new economic outlook, the currency could trade within a strengthened band in 2026, supported by much-improved fundamentals. Key drivers include robust foreign exchange reserves, enhanced market liquidity, and a record current account surplus achieved last year. That momentum follows a 7.5% gain in 2025, a sharp reversal from steep losses after the 2023 devaluation. Reforms such as the Electronic Foreign Exchange Matching System have boosted transparency, narrowed rate gaps, and restored investor confidence. Still, analysts warn that election risks, export shocks, and weaker oil prices could test the naira’s newfound stability.
Business Day
