Nigeria’s currency, ‘Naira’ is on track for its strongest annual performance in almost a decade, supported by increased dollar inflows from higher oil prices and remittances, according to analysts.
The currency closed at ₦1,328.92 per dollar on Wednesday.
Based on the average forecast of four analysts surveyed by Bloomberg, the naira is expected to end the year at ₦1,290 per dollar.
That projection would extend the naira’s 8% gain so far this year to almost 12%, marking its best annual advance since at least 2018.
Analysts attribute the improved performance to rising dollar inflows into the economy.
Key factors include:
– Higher oil prices which have boosted government foreign exchange earnings
– Increased remittances from Nigerians abroad, providing additional dollar liquidity
The inflows have helped insulate the naira from political risks that typically weigh on the currency during election seasons.
The projected year-end rate of ₦1,290 would represent a notable turnaround for the naira, which has faced significant pressure in previous years due to foreign exchange shortages and volatile oil revenues.
Market watchers say the stronger outlook reflects improved external earnings and better dollar supply, even as the country prepares for political activities ahead of 2027.
While forecasts can change with global oil prices and capital flows, the current trend points to renewed stability for the local currency compared to the volatility seen in recent years.
The naira’s performance will remain a key indicator for businesses, investors and consumers as Nigeria navigates economic reforms and global market conditions through the rest of 2026.
