Naira Hits Best Exchange Rate Against Dollar in Two Years, Sparks Hope Across Nigeria

The Nigerian Naira hits best exchange rate against dollar in two years, sparks hope across nigeria.

Nigeria’s currency, the naira, has recorded its strongest performance against the United States dollar in two years, creating fresh optimism among businesses, investors, and everyday Nigerians who have endured months of currency instability and rising costs.

On Thursday, January 29, 2026, the naira closed trading at about N1,385 to one dollar at the Nigerian Foreign Exchange Market, marking its highest level since early 2024.

This improvement represents a significant gain from the rates seen throughout 2025, when the naira struggled heavily against the dollar.

The performance was confirmed by official data released from the Central Bank of Nigeria and market analysts.

For many Nigerians, the sudden strengthening of the naira came as a surprise. Over the past year, the local currency has battled sharp depreciation, leading to increased prices of imported goods, rising transportation costs, and inflation that affected nearly every household.

The new exchange rate has now renewed hopes that economic stability might finally be returning.

Reasons For Improvement

Market watchers say the improvement is a result of several economic reforms introduced by the federal government and the Central Bank of Nigeria. These include efforts to clean up the foreign exchange market, increase transparency in dollar supply, and encourage more foreign investments into the country.

Analysts also point to improved oil production levels and increased dollar inflows as major contributors to the currency’s recovery.

The foreign exchange market showed strong activity on the day the naira hit its new high. During trading, the dollar exchanged between N1,367 and N1,400 before settling at around N1,385.

This range indicated improved liquidity and growing confidence among traders, who had previously avoided holding the naira due to fears of sudden depreciation.

Remarks From Business Owners

Business owners across Nigeria welcomed the development, especially importers who rely heavily on foreign currency to purchase goods. Many of them had struggled to keep prices stable as the naira weakened, often transferring increased costs to consumers.

With the currency now showing strength, there is cautious hope that prices of some goods may stabilize or even drop slightly in the coming months.

For small business owners, the stronger naira could also mean reduced operational costs. Entrepreneurs who depend on imported raw materials, machinery, or digital services paid in dollars are likely to experience some relief if the currency maintains its current position. This could potentially slow down inflation and ease pressure on consumers.

Financial analysts have described the currency gain as one of the most positive developments in Nigeria’s economic landscape in recent times.

According to economic reports, the naira’s rise reflects increasing confidence in Nigeria’s monetary policy direction, particularly the Central Bank’s commitment to stabilizing the exchange rate and improving market governance.