By Naomi Jeremiah

Economic analysts and Bureau De Change (BDC) operators say the naira is likely to record stronger gains and improved stability in 2026, supported by rising foreign exchange inflows and ongoing economic reforms.

They told Nairametrics that recent changes in Nigeria’s FX market including improved transparency, tighter regulation, and exchange rate unification by the Central Bank of Nigeria (CBN) have reduced speculation and narrowed the gap between official and parallel market rates.

BDC operators say improved liquidity has reduced the incentive to hoard dollars. “As confidence returns, more people are willing to sell dollars rather than hold them,” said Mustafa Abdullahi, a BDC operator in Abuja.

Analysts expect FX inflows to rise further in 2026, driven by higher oil output, better security around oil facilities, stronger diaspora remittances, and growing non-oil exports.

Experts also point to sustained monetary tightening and better fiscal discipline as key to supporting the naira. Reduced import dependence due to improved local production is expected to ease pressure on foreign exchange demand.

However, analysts warned that election-related spending could pose risks if not properly managed.

Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said Nigeria’s strong external reserves and improved liquidity management reduce the risk of major currency shocks. He projected that the naira could trade within the ₦1,400–₦1,500 per dollar range for much of 2026.

CardinalStone also forecasts that the naira could strengthen to between ₦1,350 and ₦1,450 per dollar this year.

Source: Nairametrics