The naira traded within a relatively stable band of ₦1,340 to ₦1,430 per US dollar in Nigeria’s official foreign exchange market during the first quarter of 2026, according to the Centre for the Promotion of Private Enterprise (CPPE).
This was disclosed by CPPE Chief Executive Officer, Muda Yusuf, in the organisation’s Q1 economic review and Q2 outlook, which highlighted improving macroeconomic stability despite persistent structural pressures.
The relative stability of the naira during the period was attributed largely to strengthened external reserves, which rose to about $50 billion by March 2026.
This helped moderate imported inflation and restore a level of investor and business confidence in the economy.
However, CPPE noted that the broader economic environment remains strained. High energy costs, insecurity, and structural inefficiencies continue to drive a severe cost-of-living crisis for many Nigerians, limiting the full benefits of exchange rate stability.
Looking ahead to the second quarter of 2026, the organisation projects a cautiously optimistic outlook for the naira and overall economy but warns of significant downside risks.
These include global geopolitical tensions particularly in the Middle East as well as domestic political uncertainties linked to the buildup toward Nigeria’s 2027 elections.
CPPE also cautioned that monetary policy must remain carefully balanced. It advised against further tightening by the Central Bank of Nigeria, arguing that current inflationary pressures are largely driven by structural and cost-related factors rather than excess demand.
Overall, while Q1 reflects a phase of exchange rate stabilization and improving macroeconomic indicators, CPPE maintains that sustaining this trend into Q2 will depend heavily on managing external shocks, controlling energy costs, and maintaining policy consistency.
Source: DailyPost
