Naira rises to N1,401 per dollar at official FX market, marking strongest level since EFEMS launch amid improved liquidity and growing investor confidence

Nigeria’s currency has strengthened to its highest level since the introduction of the new Electronic Foreign Exchange Matching System (EFEMS), reflecting improved liquidity and growing investor confidence.

Also read:  Naira Edges Lower Amid Midweek Forex Market Activity

At the Nigerian Foreign Exchange Market (NFEM) on Tuesday, the naira appreciated to N1,401.22 per dollar, up 1.26 per cent or N17.73 from Monday’s N1,418.95, according to Central Bank of Nigeria (CBN) data.

Trading activity indicated heightened demand at the stronger end of the market, with bids submitted as high as N1,400 per dollar, signalling increased willingness among participants to transact at firmer rates.

Meanwhile, the parallel market remained stable at N1,485 per dollar, suggesting reduced arbitrage pressures.

The currency’s strength has been supported by rising external reserves, which reached $46.03 billion as reflecting steady foreign inflows and improved sentiment around Nigeria’s external position.

Tilewa Adebajo, CEO of CFG Advisory, said the naira is likely to trade within a range of N1,400 to N1,500 per dollar this year, citing rising foreign capital inflows, stronger diaspora remittances, and reforms in the oil and gas sector as key stabilising factors.

The Nigerian Economic Summit Group (NESG) also forecasts the naira at around N1,480 per dollar in 2026, projecting external reserves could rise to $52 billion over the same period, supported by ongoing reforms and sustained stabilisation measures.

CBN projections align with these expectations, estimating an average exchange rate of N1,451.63 per dollar at the NFEM in the fourth quarter of 2025, with further moderation towards N1,400 in 2026.

The apex bank attributes the outlook to improved FX market efficiency, stronger capital inflows, a current account surplus, and broader economic recovery.

Since its full rollout the EFEMS platform has enhanced transparency, tightened price alignment, and improved confidence in the naira, according to market participants.

Also read: Naira Edges Up Amid Volatility, Offers Sliver of Relief

Analysts credit these structural reforms with supporting the currency’s recent gains and fostering stability in Nigeria’s official FX market.