Market News

The naira may come under pressure this year given the widening gap between the official and market rate, snapping its rare stability seen last year, according to Bismarck Rewane, managing director of Financial Derivatives Company.

“The gap between the official rate and market rate has begun to widen at N71, suggesting renewed pressure in the FX market,” Rewane said at the economic outlook organised by the Nigerian-British Chamber of Commerce (NBCC). “The naira is expected to weaken to roughly N1,640/$ by the end of 2026.”

The currency had its best year in more than a decade last year, gaining 7.5 percent, compared to a 41 percent loss in value in 2024. The rally was supported by various policies rolled out by the central bank, including the introduction of an Electronic Foreign Exchange Matching System that has helped return transparency to a once opaque market.

The naira depreciated this week by 0.3 percent week on week to N1,423.14/$ as demand pressures outweighed supply. But analysts polled by BusinessDay expect the naira to remain broadly stable in the near term, supported by a favourable external position characterised by a sustained current account surplus and strong foreign exchange reserves.