Naira to dollar exchange rate today: ₦1,400/$ highest rise in months

Nigeria’s currency, the naira, recorded a significant moment of relative strength on Wednesday as it appreciated to ₦1,400.47 per US dollar at the official foreign exchange window. This development marks the first time the currency has traded at the ₦1,400 level in nearly eight months, with the last occurrence recorded in May 2024.

Figures released from the Nigerian Foreign Exchange Market (NFEM)—the country’s official FX trading platform—show that the naira improved by 75 kobo, representing a 0.05 percent gain from the ₦1,401.22 per dollar rate recorded earlier in the week. While the movement appears marginal, analysts describe it as symbolically important given the prolonged volatility experienced by the currency over the past year.

Strongest Performance Since EFEMS Introduction

The latest exchange rate represents the strongest showing by the naira since the Central Bank of Nigeria (CBN) rolled out the Electronic Foreign Exchange Matching System (EFEMS). The platform was introduced as part of broader FX reforms aimed at improving transparency, reducing speculative trading, and restoring investor confidence in the official market.

Data from the NFEM indicate that the naira has maintained a steady upward trend in recent trading sessions. From ₦1,418.95 on January 26, the currency strengthened further to ₦1,401.22 on January 27, before settling at ₦1,400.47 the following day. Market observers note that the sustained rally suggests growing stability rather than a one-off correction.

Parallel Market Also Records Gains

The positive momentum was not limited to the official window. At the parallel (black) market, the naira also appreciated, exchanging at ₦1,470 per dollar, its strongest level since December 1, 2025.

The local currency had traded around ₦1,490/$1 on January 26 and maintained that level through January 27. However, by January 28, it firmed up by ₦20, closing at ₦1,470 per dollar. This convergence—though still wide—between the official and parallel market rates is viewed as a healthy sign for FX market stability.

Currency dealers say the improved sentiment reflects declining panic demand for dollars, as well as increased confidence in the CBN’s reform agenda.

FX Reserves Offer Crucial Support

Nigeria’s improving external reserves have also played a critical role in supporting the naira. According to official figures, the country’s foreign exchange reserves climbed to $46 billion as of January 22, the highest level recorded in nearly eight years.

In his New Year address, President Bola Ahmed Tinubu highlighted the importance of strong reserves in shielding the naira from global economic pressures. He noted that the buffer has helped protect the local currency against external shocks and expressed optimism that the position would improve further in 2026.

“We expect this position to strengthen further in the new year,” the president said, reinforcing expectations of sustained policy support for the currency.

Why the ₦1,400 Level Matters

Though far from its historical highs, the naira’s return to the ₦1,400 band carries psychological and economic weight. For businesses, a more predictable exchange rate improves planning and cost projections. For investors, it signals a degree of policy credibility. For households, it offers cautious hope of easing imported inflation.

Economists warn, however, that sustaining this momentum will require consistent FX supply, disciplined monetary policy, improved export earnings, and reduced reliance on imports.

Still, the latest performance suggests that Nigeria’s FX reforms may be beginning to yield results—albeit gradually.

Frequently Asked Questions (FAQ)

What is the current official naira to dollar rate?

The naira traded at ₦1,400.47 per dollar at the official NFEM window.

When last did the naira trade at ₦1,400/$1?

The last time the naira reached this level was in May 2024.

Why is the EFEMS important?

The Electronic Foreign Exchange Matching System improves transparency and price discovery in Nigeria’s FX market.

Has the naira improved at the parallel market?

Yes. The naira appreciated to ₦1,470 per dollar, its strongest level since December 2025.

How do FX reserves affect the naira?

Higher reserves provide confidence and help cushion the currency against external shocks.

Naira Hits ₦1,400/$ Again as FX Reforms and Reserves Boost Market Confidence.