January 29, (THEWILL) — The naira continued its recovery at the official foreign exchange market, rising to a 22-month high of N1,394 per dollar, reflecting improved dollar liquidity and growing investor confidence in Nigeria’s monetary reforms.
Market data showed the local currency gained against the greenback as sustained foreign inflows and tighter FX management by the Central Bank of Nigeria (CBN) supported stability. Analysts attribute the strengthening to increased dollar supply from exporters, foreign portfolio investors, and improved crude oil earnings.
The rally also follows recent policy measures by the CBN aimed at clearing FX backlogs, boosting transparency in the forex market, and attracting foreign capital. These reforms have helped narrow the gap between the official and parallel markets, reducing speculation pressure on the naira.
Economic observers note that easing inflation expectations and rising external reserves have further strengthened sentiment around the currency.
However, experts caution that sustaining the naira’s gains will depend on consistent FX inflows, stable oil production, and continued fiscal discipline.
For businesses, the stronger naira could help moderate import costs and ease pressure on inflation, while improving planning certainty for manufacturers and traders.
The recent appreciation marks one of the most significant currency recoveries in nearly two years, signalling cautious optimism about Nigeria’s economic outlook.
Ogochukwu Onwaeze
