Naira Gains Temporarily, Projected at N1,550/$ by 2026

According to a recent report by BMI Fitch Solutions, the Nigerian naira has experienced a temporary gain, closing the week at N1,358.1, reflecting a 5.8% appreciation in the official market so far in 2026. However, BMI projects that the naira will weaken modestly to N1,550/$ by the end of 2026.

The report indicates that while the naira strengthened early in 2026, underlying pressures suggest a gradual depreciation throughout the year. BMI cites an average inflation rate of 23.3% for 2025 and a projected 14.5% for 2026, alongside increasing domestic demand for foreign exchange (FX).

Despite this, BMI notes that the depreciation in 2026 will be modest compared to recent years, supported by Nigeria's wide interest rate differential and improved investor sentiment towards emerging markets. The report also highlights Nigeria's external reserves, which have improved for the first time in eight years, partly due to lower fuel imports and increased domestic refining capacity, including output from the Dangote Refinery.