Economist Bismarck Rewane Highlights Undervaluation of Nigerian Naira by 11%

Bismarck Rewane, the Managing Director of Financial Derivatives Company, stated that the Nigerian Naira is undervalued by 11% according to purchasing power parity estimates. He highlighted the current fair value of the Naira to be around N1,256.79 per dollar.

Rewane provided a detailed analysis of the structural and cyclical factors influencing Nigeria's economy, including inflation dynamics, capital flows, production trends, external balances, and business cycles. At an economic outlook event, Adeyinka Ogunnubi from CFAO Nigeria and Titilola Osinowo from Ardova Plc discussed practical measures to improve liquidity management, emphasizing the importance of foreign exchange swaps and options for treasuries.

Ogunnubi stressed the need for strategic hedging to align cash flows and optimize treasury functions. The Nigerian foreign exchange market witnessed fluctuations, with the Naira weakening against the dollar in the official market but strengthening marginally in the parallel market.

Nigeria's external reserves continued to rise, reaching $45.98 billion as of January 21, 2026.