The Nigerian Naira displayed a mixed but cautiously optimistic performance against major global currencies in the official foreign exchange market at the start of the new week. Data released by the Central Bank of Nigeria (CBN) indicates a slight strengthening of the local currency against the United States Dollar, British Pound Sterling, and the Euro.
Official Market Rates Show Naira's Movement
According to the latest figures from the CBN's Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira closed at N1,421.46 per US Dollar on Monday, January 12. This marks a marginal appreciation from the rate of N1,423.17 per dollar recorded on the previous trading day, Friday, January 9.
The performance was more pronounced against other key currencies. The Naira gained ground against the British Pound Sterling, closing at N1,915.84 per Pound, an improvement from N1,912.03. Similarly, it appreciated against the Euro, ending the day at N1,661.68 per Euro, up from N1,658.13.
Snapshot of Naira's Performance Against Other Currencies
The CBN's published selling rates for January 12 provide a broader view of the Naira's standing:
- CFA: N2.5253
- Chinese Yuan/Renminbi: N203.8488
- Danish Krona: N222.3565
- Japanese Yen: N9.0063
- Saudi Riyal: N379.0353
- South African Rand: N86.7383
- Swiss Franc: N1,783.9585
- WAUA: N1,938.8302
- SDR: N1,943.8440
Economists Project Naira's Trajectory for 2026
As the market reacts to daily fluctuations, financial experts have begun outlining their projections for the Naira's performance throughout the year 2026. Yemi Kale, the Chief Economist at the Africa Export-Import Bank (Afreximbank), offered a detailed forecast during his keynote address at the FirstBank Nigeria Economic Outlook 2026 event.
Kale projected that the Naira would likely trade within a band of N1,350 to N1,450 per US Dollar in 2026. His analysis considered critical variables including global oil prices, Nigeria's foreign exchange inflows, domestic inflation trends, and the consistency of monetary and fiscal policies.
Under a baseline scenario, he expects the Naira to remain under pressure but avoid a sharp devaluation, potentially trading around N1,313 per dollar by June 2026 and approximately N1,340 by December 2026. This outlook assumes moderate improvements in Nigeria's foreign reserves, stable oil export revenues, and a gradual decline in inflation, barring any major external economic shocks.
A More Optimistic View from Financial Analysts
Adding to the discourse, CardinalStone Partners presented a slightly more positive outlook in their 2026 economic report titled "Indicators Align for Sustained Macro Gains." The firm aligned with the N1,350 to N1,450 per dollar range but emphasized that the Naira's strengthening could be driven by improved macroeconomic fundamentals, higher foreign exchange liquidity, and a moderating inflation rate.
These projections highlight a cautious optimism among analysts, suggesting that while challenges remain, there is a pathway to greater stability for the national currency if key economic indicators move in a positive direction.
Global Context: A Contrast with Iran's Currency Crisis
The Naira's marginal gains occur against a stark global backdrop. In a contrasting development, the national currency of Iran, the Rial, has collapsed to record lows. The depreciation has been so severe that on official foreign exchange sheets, one Iranian Rial was effectively valued at zero euros.
This collapse has created a startling parallel: as of Monday, January 12, one Nigerian Naira was trading at one Iranian Rial, marking the highest level ever recorded for this pairing. This situation illustrates the extreme volatility in global currency markets, where with N2 million, a Nigerian could theoretically hold one billion Iranian Rials.
The mixed performance of the Naira underscores the ongoing complexities within Nigeria's foreign exchange landscape, balancing between domestic policy efforts, global oil market dynamics, and broader international economic currents.
