Nigeria’s dollar GDP rose by 22% to $307.5 billion in 2025, driven by stronger economic output and a firmer naira, according to a report by Quartus Economics.
By any serious reading of Nigeria’s current economic condition, one reform under President Bola Ahmed Tinubu stands out as the clearest indicator of where the country is headed: the restructuring of the foreign exchange market led by the Central Bank of Nigeria.
FX Turnover Surge Lifts Naira Against Dollar
The naira rose against the US dollar at the Nigerian Foreign Exchange Market amidst a significant surge in interbank turnover, according to daily FX data published by the Central Bank of Nigeria.
Dollar liquidity improved above international payment levels...
Cash Outside Banks Falls ₦198bn in January
Cash held outside Nigeria’s banking system fell by ₦197.68bn in January 2026, dropping to ₦5.21tn, according to the Central Bank of Nigeria’s Money and Credit Statistics.
The decline came as total currency in circulation slipped marginally to ₦5.73tn, though the share of cash outside banks remained high at 90.91%, slightly lower than 94.33% in December 2025.
Year-on-year, cash outside banks was still higher, rising from ₦4.74tn in January 2025 to ₦5.21tn in January 2026, while overall currency in circulation expanded by ₦495.68bn.
Broad money supply (M3) fell by ₦1.05tn to ₦123.36tn in January, driven largely by a decline in net foreign assets, which dropped to ₦29.61tn from ₦31.51tn in December.
The naira strengthened during the month, closing at ₦1,391/$ compared with ₦1,431/$ at the start of January, contributing to the lower naira value of foreign assets.
Meanwhile, net domestic assets rose to ₦93.76tn, up ₦850.76bn month-on-month, reflecting stronger domestic credit and liquidity conditions. Narrow money also increased to ₦42.33tn, showing a year-on-year rise of ₦5.57tn.
Against this backdrop, the Monetary Policy Committee (MPC) cut the benchmark interest rate by 50 basis points to 26.5%, citing easing inflation and improved FX stability. Governor Olayemi Cardoso said food inflation fell to 8.89%, the lowest in 13 years.
Cardoso reaffirmed the MPC’s commitment to evidence-based policy, noting that “the ongoing disinflation trajectory would continue, largely supported by sustained exchange rate stability and enhanced food supply.”
Naira Reaches Two-Year Peak kf N1,347/$
The naira has strengthened sharply in recent weeks, reaching one of its strongest levels in nearly two years, even as rising foreign portfolio inflows increase the risk of investor profit-taking later in the year, according to a macro update...
Naira Hits N1,430/$ at Parallel Market
The naira strengthened to between 1,425 and 1,430 per dollar at the parallel market following the Central Bank of Nigeria’s renewed directive allowing the sale of foreign exchange to Bureau De Change operators, a development stakeholders say is already...
