Author: Lifestyle & Wellness Desk

President Bola Tinubu has nominated former Rivers South-East Senator Magnus Abe as chairman of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), alongside 20 other nominees for boards of Nigeria’s key petroleum regulatory agencies, pending Senate confirmation. In letters to the Senate on Monday, the President requested expedited approval for the appointments to the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Abe, a two-term senator for Rivers South-East, previously served on the board of the Nigerian National Petroleum Corporation and currently chairs the National Agency of the Great Green Wall. He will lead the NUPRC board, which includes non-executive commissioners Paul Jezhi, a former Trade Union Congress chairman in Kaduna, and Sunday Babalola, a former deputy director of the now-defunct Department of Petroleum Resources. Seven executive commissioners were also nominated for the NUPRC board: Muhammed Lamido (finance), Edu Inyang (exploration and acreage), Justin Ezeala (economic regulation and strategic planning), Henry Oki (development and production), Indabawa Alka (corporate services and administration), Mahmood Tijani (health, safety, and environment), and Olayemi Adeboyejo (secretary and legal adviser). Lamido and Adeboyejo were first appointed in 2022 by former President Buhari, while Tinubu appointed Alka in 2023. The remaining nominees are new appointees. For the NMDPRA board, Tinubu nominated Adegbite Adeniji, a lawyer with over 30 years of experience in energy and natural resources, as chairman. Adeniji previously served as special technical adviser to the Minister of State for Petroleum on upstream and gas and contributed to the World Bank’s Oil and Gas Policy team advising Nigeria on petroleum sector reforms, including the Strategic Gas Plan. He currently leads ENR Advisory as managing partner. Other NMDPRA board nominees include Kenneth Kobani and Asabe Ahmed as non-executive members, and Abiodun Adeniji (finance), Francis Ogaree (hydrocarbon), Oluwole Adama (midstream and downstream gas infrastructure), Dr. Mustapha Lamorde (corporate services and administration), Yahaya Yinusa (distribution systems), Adeyemi Aminu (corporate services), Modie Ogechukwu (economic regulation and strategic planning), and Olawale Dawodu (board secretary and legal adviser). Some members were previously appointed under former administrations, while others are new nominees. The presidential nominations follow the Senate’s recent confirmation of the chief executives of the two agencies: Oritsemeyiwa Eyesan as CEO of NUPRC and Saidu Aliyu Mohammed as CEO of NMDPRA. Both bodies were established under the Petroleum Industry Act of 2021, which restructured Nigeria’s petroleum sector governance. President Tinubu tasked all nominees with performing their duties professionally, highlighting the critical role of effective oversight in the nation’s oil and gas sector. The Senate is expected to screen the nominees in the coming weeks before formal confirmation.

International Energy Insurance Plc has converted a ₦2 billion deposit received from Norrenberger Advisory Partners Limited into equity, resulting in the creation of 1.25 billion new ordinary shares in the company. The conversion was approved by shareholders at an Extraordinary General Meeting (EGM) held virtually on December 31, 2025. In a disclosure filed with the Nigerian Exchange Limited on Monday, the company stated that the newly issued shares were priced at ₦1.60 per share, with a nominal value of ₦0.50 each. The shares will rank pari passu with existing ordinary shares, thereby granting Norrenberger Advisory Partners Limited an equity stake in International Energy Insurance. According to the resolutions passed at the EGM, the ₦2 billion deposit for shares provided by Norrenberger Advisory Partners Limited was formally converted into equity through the issuance of 1,250,000,000 ordinary shares on the stated terms. Beyond the equity conversion, shareholders also approved plans for the company to raise additional capital of up to ₦17.5 billion through a range of options, including private placements, rights issues, public offers, strategic investor participation, or a combination of these methods. The Board of Directors was authorised to determine the structure, pricing, timing and tranches of any capital raise, subject to the necessary regulatory approvals. The meeting further approved an increase in the company’s share capital to accommodate the new issuance, alongside amendments to the Memorandum and Articles of Association to reflect the updated share structure in line with the Companies and Allied Matters Act, 2020. Shareholders also empowered the Board to take all required steps to implement the resolutions, including filings with regulatory authorities, engagement of professional advisers and full compliance with applicable regulatory requirements. All actions previously taken by the Board and management in connection with the resolutions were ratified. The company said the capital restructuring and planned fundraising are expected to strengthen its financial position, improve underwriting and investment capacity, and support long-term strategic growth within Nigeria’s insurance sector.

Rand Merchant Bank Nigeria Limited has announced that it has met the new minimum capital requirement set by the Central Bank of Nigeria (CBN). The bank disclosed in a statement on Monday that the capital threshold was achieved on December 30, 2025. In March 2024, the CBN revised the minimum capital requirements for banks operating in Nigeria. Under the new framework, banks with international licences are required to maintain a minimum capital base of ₦500 billion, while national commercial banks must raise at least ₦200 billion. Regional commercial banks and merchant banks are each required to meet a ₦50 billion threshold. In the non-interest banking segment, national operators are expected to maintain ₦20 billion in capital, while regional players are required to raise ₦10 billion. RMB Nigeria said achieving the capital requirement highlights its financial strength, resilience and strong commitment to regulatory compliance. The bank added that the milestone also reflects shareholders’ confidence in the Nigerian economy and the institution’s role in supporting the country’s evolving financial system. According to the bank, meeting the CBN recapitalisation benchmark positions it to deliver innovative financial solutions, strengthen customer confidence and contribute meaningfully to the stability and growth of Nigeria’s banking sector. Commenting on the development, the Chief Executive Officer of RMB Nigeria, Bayo Ajayi, said the bank was pleased to have satisfied the CBN’s capitalisation requirement. He noted that the achievement demonstrates shareholders’ trust in the Nigerian economy and the bank’s commitment to providing high-quality corporate and investment banking services across Nigeria and the wider African market. Ajayi added that the bank remains focused on building a stronger and more resilient institution capable of thriving in Nigeria’s dynamic financial environment. With this development, Rand Merchant Bank Nigeria has joined the growing list of financial institutions that have met the CBN’s minimum capital requirement ahead of the March 2026 deadline. At the recent Bankers’ Dinner in Lagos, CBN Governor Olayemi Cardoso reaffirmed that the recapitalisation exercise remains on track. He disclosed that several banks have already met the new thresholds, while others are making steady progress towards compliance. According to Cardoso, 27 banks have raised capital through public offers and rights issues so far, with 16 institutions having met or exceeded the new minimum requirements, underscoring the resilience and depth of Nigeria’s banking sector.

Nigerian businesses are heading into 2026 with renewed optimism, according to the December 2025 Business Expectations Survey released by the Central Bank of Nigeria (CBN). The survey shows that the aggregate Business Confidence Index stood at 37.5 index points in December, with expectations that it will rise to as high as 52.5 points within the next six months, signalling growing confidence across the private sector. The Confidence Index, which measures overall business sentiment, reflects responses gathered between December 1 and 5, 2025, from 1,900 business enterprises nationwide. The survey recorded a response rate of 97.3 per cent and covered three major sectors of the economy: industry, services and agriculture. Despite ongoing operational and macroeconomic challenges, the report indicates that businesses are increasingly focused on longer-term stability and growth prospects. The industrial sector recorded the highest level of confidence at 38.7 index points, with agriculture and services also posting positive sentiment about the broader economic outlook. According to the report, all sectors expressed optimism about current macroeconomic conditions, with expectations that confidence will remain strong over the next six months. While the services sector showed slightly slower optimism in the near term, it recorded stronger confidence over the three- and six-month outlook. Businesses across sectors also expressed confidence in higher volumes of activity in the coming months, pointing to potential growth in overall economic output. In line with anticipated expansion, firms expect to increase hiring in January 2026. Sectoral analysis shows that agriculture has the strongest prospects for business expansion, while mining and quarrying is expected to record the highest employment growth in the period. Supporting this optimism are expectations of improved business activity, a projected appreciation of the naira against the US dollar, and a gradual decline in interest rates, which businesses believe will ease financing conditions. However, the report also highlights persistent structural challenges. Insecurity was identified as the most significant threat to operations, scoring 74.0 index points. This was followed by high or multiple taxation at 69.9 points, inadequate power supply at 67.9 points, and elevated interest rates at 67.5 points. Although these constraints continue to affect profitability and operations, they have not significantly dampened business expansion plans. Capacity utilisation across all sectors remained steady at an average of 49.8 per cent in December, with the construction sector recording the highest utilisation rate during the period. Regional sentiment varied, with the North-East posting the highest level of optimism at 51.5 index points, while the South-East recorded the lowest at 27.9 points. Nevertheless, all geopolitical zones reported positive expectations for the months ahead. Overall, the December 2025 survey presents a picture of resilience within Nigeria’s private sector. While businesses continue to grapple with insecurity, high taxes and infrastructure deficits, their outlook remains focused on growth, expansion and job creation, driven by expectations of a stronger currency and more favourable credit conditions.

The Chartered Institute of Taxation of Nigeria (CITN) has warned about the risks the country faces due to alleged discrepancies between the tax laws passed by the National Assembly and the versions later gazetted. Observers have advised President Tinubu to heed the guidance of the CITN rather than relying solely on government-appointed officials, some of whom may lack the courage to provide candid advice. Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has been criticized for endorsing the implementation of the gazetted version, despite its deviation from the law passed by the National Assembly. Experts argue that only the law as passed by the legislature can be legitimately enforced, and implementing the gazetted version could create significant legal and economic challenges. In contrast, Mr. Innocent Ohagwa, the 17th President and Chairman of the CITN Council, emphasized that “the integrity of the legislative process is fundamental to the rule of law” and highlighted that tax legislation requires the highest standards of accuracy, transparency, and procedural fidelity due to its broad implications for government revenue, businesses, professionals, and citizens. CITN, established on February 1, 1982, under President Shehu Shagari’s administration, was created to provide professional, objective, and independent advice on taxation. The institute has historically avoided political entanglement, focusing instead on ensuring the nation’s tax system operates fairly and transparently. The origin and purpose of taxation As Benjamin Franklin famously stated, “In this world, nothing can be said to be certain, except death and taxes.” Historically, taxes were imposed by rulers to fund wars and maintain their own comfort. The rise of democracy shifted the power to tax from monarchs to legislatures, granting citizens oversight and control. Oliver Wendell Holmes, Jr. summarized this principle, stating, “Taxes are what we pay for civilized society.” Despite democratic oversight, taxes remain subject to political influence, and transparency does not always guarantee fairness. Alexis de Tocqueville noted that in democracies, those who vote for taxes may avoid paying them. This remains relevant in Nigeria, where the incomes of high-ranking officials are often not captured in the tax net, while private citizens bear the full burden. As US President Calvin Coolidge once warned, “The power to tax is the power to destroy… A government which imposes taxes not required by urgent public necessity and sound policy becomes an instrument of tyranny.” Nigeria’s current predicament Justice Holmes also remarked in a 1928 case that “The power to tax is not the power to destroy while this court sits,” highlighting the importance of checks and balances. In Nigeria, any attempt to enforce a tax law that bypasses the National Assembly threatens to create an imbalance between the executive and legislative branches. It is in President Tinubu’s interest to distance himself from any amended tax law that undermines legislative authority. History provides clear warnings: executive overreach has, in the past, led to political and legal repercussions for leaders once power shifted. Multinational companies and investors are likely to hesitate in countries where the legitimacy of tax laws is questionable. Advisers recommend that if any changes were made to the Tax Law after its passage by the National Assembly, implementation should be delayed. President Tinubu should also publicly distance himself from those promoting the amendments to safeguard the nation’s legal and economic integrity.

Licensed customs agents in Nigeria are threatening to protest against planned increases in shipping fees, citing poor timing and limited business activity. Agents told reporters on Sunday that raising charges so early in the year is inappropriate, as many businesses have yet to resume full operations. According to updated Mediterranean Shipping Company tariffs, import documentation fees for 20ft containers are set to rise from N45,000 to N58,500, while 40ft container fees would increase from N72,000 to N93,600. Port additional charges are also set to climb, with 20ft containers moving from N50,000 to N80,000 and 40ft containers from N100,000 to N160, effective January 1, 2026. National Protocols Officer of the Association of Nigerian Licensed Customs Agents (ANLCA), Riwane Amuni, warned that any unilateral implementation would trigger protests. He emphasized that demonstrations could extend to other shipping companies and terminals if the increases go ahead without consultation. Similarly, Abayomi Duyile, Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, confirmed that the Nigerian Shippers Council (NSC) has been informed of the planned hike and has instructed the shipping company to engage stakeholders. He said any increase implemented without proper dialogue could lead to protests and office shutdowns once agents resume normal operations after the festive period. Duyile stressed that any fare adjustments must be justified and transparent, warning that unjustified hikes could worsen inflation. He noted that shipping companies should issue prior notices of at least one to three weeks before implementing new charges. Femi Anifowose, Coordinator of ANLCA’s Western Zone, described the planned fare increase as arbitrary, ill-timed, and unjustifiable, urging President Bola Tinubu to direct regulatory authorities, including the NSC and the Ministry of Marine and Blue Economy, to halt the increment. He added that key cost indicators cited by shipping lines, such as diesel, fuel, and foreign exchange, have largely stabilized over the past 18 months. Attempts to reach the shipping company for comment were unsuccessful as calls and emails went unanswered.

Shareholders have praised the Dangote Petroleum Refinery for strengthening Nigeria’s economic stability and alleviating fuel shortages, highlighting that the $20bn facility has delivered significant benefits to the nation and citizens’ welfare. In a statement on Sunday, they said the refinery’s operations marked a milestone for Nigeria’s downstream petroleum sector, noting that the country experienced year-end festivities without the usual fuel scarcity or price surges for the first time in recent memory. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders, noted that the refinery’s activities are already helping to ease inflationary pressures, particularly through lower transport and energy costs. He added that the reduction in retail petrol prices following the start of local refining has contributed to a sustained disinflationary trend. Describing the refinery as a major national achievement, Umar said it has positioned Nigeria globally as home to the world’s largest single-train refinery while boosting the domestic economic environment. He highlighted the recent partnership between Dangote Group and Honeywell International Inc. to expand the refinery’s daily processing capacity to 1.4 million barrels per day as evidence of Aliko Dangote’s long-term commitment to the country despite operational challenges. Shareholders also pointed to planned expansions in polypropylene production to 2.4 million metric tonnes annually and urea output from three million to nine million metric tonnes per year, noting the potential positive impact on Nigeria’s manufacturing and agricultural sectors. They emphasised that Dangote’s investment strategy is notable at a time when many wealthy individuals prefer overseas assets, describing him as the largest indigenous investor in the Nigerian economy. Umar encouraged Dangote to expedite the listing of the refinery on the Nigerian Exchange to provide ordinary Nigerians with wealth-creation opportunities and deepen the capital market. He said shareholding would empower citizens, referencing the strong track record of capital gains and dividends from other Dangote Group listed companies, including Dangote Cement Plc, Dangote Sugar Refinery Plc, and NASCON Allied Industries Plc. The shareholders also applauded Dangote’s philanthropic efforts, particularly the launch of the N1tn Dangote Education Trust by the Aliko Dangote Foundation, calling it a significant investment in Nigeria’s future human capital. They urged other wealthy Nigerians to follow Dangote’s example by prioritising local investments that generate jobs, strengthen industrial capacity, and drive broad-based economic growth.  

The Central Bank of Nigeria has stepped up efforts to strengthen operational discipline across the financial system, placing renewed emphasis on ensuring consistent access to cash nationwide. The initiative, aimed at restoring confidence and reliability in cash availability, is beginning to deliver visible improvements for millions of Nigerians who rely on physical currency for daily transactions and business activities. A key milestone in this process was the creation of a special committee tasked with addressing Nigeria’s long-standing cash scarcity challenges. Chaired by CBN Governor Olayemi Cardoso, the committee was mandated to conduct a comprehensive review of the entire cash ecosystem and propose practical, system-wide solutions. Its recommendations have since translated into noticeable improvements across the country. For the first time in several years, Nigerians went through the Christmas and New Year festivities without widespread reports of cash shortages. Unlike previous seasons characterised by frustration and uncertainty, customers were largely able to access cash seamlessly through bank branches, automated teller machines, and other channels. The absence of the usual anxiety highlighted a significant shift in cash management outcomes. Traditionally, the festive period in Nigeria has been associated with severe naira shortages, often spilling over into the new year and disrupting economic activities. During such times, customers struggled to withdraw funds from ATMs, endured long queues in banking halls, and faced frequent difficulties at point-of-sale terminals. That pattern now appears to be changing. Following the committee’s review, the CBN introduced targeted measures to address structural bottlenecks in cash circulation. Many Nigerians report that these interventions have led to a clear improvement in cash access nationwide. In markets across Lagos, Abuja, Kano, Calabar, and other major cities, traders and small business owners have welcomed what they describe as lasting solutions to a persistent problem. Many said the improved cash situation has enabled smoother transactions and better planning. Visits to several commercial bank branches supported these claims, as customers were generally able to withdraw cash over the counter without extended delays. Banks also ensured that ATMs were adequately funded, providing multiple withdrawal options with minimal stress. In key banking districts such as Ibeju-Lekki, Victoria Island, and Ikoyi in Lagos, the long queues typically associated with the festive season were largely absent. Customers moved through banking halls more quickly, a change widely attributed to improved cash availability and more efficient branch operations. One customer, Mrs Nkiru Onyema, described her experience as a sharp contrast to previous years. She said she spent about 10 minutes at a new-generation bank to withdraw N20,000 over the counter. According to her, the consistent loading of ATMs played a major role in easing pressure on banking halls, particularly benefiting customers who depend on machines outside regular banking hours. Another customer, Stephen Abiodun, said he was able to withdraw cash from an ATM without difficulty in about 15 minutes, noting that reduced congestion in banking halls allowed people to focus on other productive activities. Similar observations were made at bank branches in areas such as Garki in Abuja, Broad Street in Lagos, and the Ikeja axis, where ATMs were fully functional and dispensing cash, contributing to a calmer environment compared with previous years. The President of the Bank Customers Association of Nigeria, Dr Uju Ogubunka, said the improvements provided significant relief to customers nationwide. He stressed that sustaining the gains would depend largely on financial institutions proactively requesting sufficient cash from the CBN, especially during periods of high demand. Explaining the strategy behind the progress, Governor Cardoso said the apex bank carried out a comprehensive review of the entire cash lifecycle, from production and transportation to distribution and end-user access. This approach, he noted, made it possible to tackle root causes rather than relying on short-term fixes. As part of the reforms, the CBN recalibrated cash-printing models, issued guidelines on optimal ATM-to-card ratios, strengthened approval requirements for ATM and branch closures, enforced sanctions on banks whose ATMs failed to dispense cash, and intensified oversight of payment agents and PoS operators nationwide. Beyond cash management, Nigeria’s digital finance transformation also gained momentum in 2025, reflecting the CBN’s commitment to innovation and system stability. The apex bank extended its Payment System Vision roadmap to 2028, reinforcing efforts to modernise infrastructure and strengthen cybersecurity. According to the CBN, more than 12 million contactless payment cards are now in circulation, while the regulatory sandbox has expanded to support over 40 fintech innovators. Revised agent-banking guidelines have strengthened anti-money-laundering controls and consumer protection, while improved integration among switching companies has advanced domestic interoperability. Nigeria is now regarded as one of Africa’s most advanced digital payments markets, with its fintech ecosystem producing eight of the continent’s nine unicorns. By mid-2025, leading fintech applications had surpassed 10 million downloads each, reflecting strong consumer adoption. In a related move, the CBN directed banks and other financial institutions to ensure uninterrupted use of foreign-issued payment cards across ATMs, PoS terminals, and online platforms nationwide. The directive is intended to improve access, security, and convenience for tourists and Nigerians returning from the diaspora. The apex bank also introduced additional safeguards, including multi-factor authentication thresholds, clearer disclosure of exchange rates and charges, stronger fraud monitoring, and enhanced know-your-customer controls. Institutions were warned that unresolved customer complaints escalated to the regulator would attract sanctions. To reinforce compliance, the CBN sanctioned deposit money banks that failed to make cash available through ATMs during the festive season, fining each defaulting institution N150m after spot checks. The apex bank said investigations would continue to address cash hoarding, illegal cash sales, and violations of withdrawal limits. Governor Cardoso reiterated that banks must comply strictly with cash distribution guidelines or face stiff penalties, stressing the CBN’s commitment to maintaining adequate cash buffers nationwide. He said the bank’s focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across Nigeria’s financial system.

The Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, have agreed to suspend planned increases in oil production through the first quarter of 2026, choosing instead to keep output at current levels amid a growing global supply surplus and uncertainty over future production from Venezuela. The decision was reached during a brief meeting on Sunday led by the group’s key producers, Saudi Arabia and Russia, according to a report by Bloomberg. Sources familiar with the discussions said members considered it too early to adjust supply policy in response to recent political developments in Venezuela, following reports that the country’s leader, Nicolás Maduro, had been captured by United States forces. According to the report, OPEC+ maintained its plan to hold production steady through the first quarter as oil markets contend with oversupply and await clarity on whether the developments in Venezuela will affect output. Delegates, who requested anonymity as the decision has not been formally announced, said collective production levels would remain unchanged until at least the end of March 2026. The virtual meeting reportedly lasted less than 10 minutes and did not involve in-depth discussions on Venezuela, as members agreed that any immediate supply response would be premature. The decision reflects a cautious approach as oil markets face weakening price momentum and excess supply. Global crude markets have been under pressure from oversupply, with oil futures falling by about 18 per cent last year, marking their steepest annual decline since the COVID-19-driven slump in 2020. Projections for 2026 suggest the surplus could widen further, as output growth from both OPEC+ and non-OPEC producers continues to exceed demand growth. Venezuela, home to the world’s largest proven oil reserves, currently produces around 800,000 barrels per day, accounting for less than one per cent of global supply and far below its historical production levels. While a sustained recovery in Venezuelan output could eventually add significant volumes to the market, analysts note that such a turnaround would likely take years, even with renewed foreign investment. US President Donald Trump has said American oil companies could invest billions of dollars to help rebuild Venezuela’s ageing energy infrastructure following the military operation that led to Maduro’s capture. However, sources cited by Bloomberg said major oil facilities were not damaged during the operation. The latest decision follows a strategic shift by OPEC+ in April 2025, when the group began accelerating the restoration of production cuts introduced in 2023. That move was widely interpreted as an effort to regain market share lost to competitors, including US shale producers, despite already ample global supply. Prior to Sunday’s meeting, OPEC+ had agreed to restore roughly two-thirds of the 3.85 million barrels per day previously cut, leaving about 1.2 million barrels per day yet to be brought back. Actual output increases, however, have lagged planned levels due to capacity constraints in some countries and efforts by others to offset earlier overproduction. The decision to pause further supply increases carries important implications for oil-dependent economies such as Nigeria. As Africa’s largest crude producer and an OPEC member, Nigeria’s fiscal health remains closely linked to global oil prices and export volumes. By holding output steady in an already oversupplied market, OPEC+ is likely to keep crude prices relatively stable but subdued in the near term, limiting revenue upside for oil exporters. Oil receipts account for a large share of Nigeria’s foreign exchange earnings and government revenue, making OPEC+ production decisions crucial for budget planning, debt servicing, and exchange rate stability. Nigeria has also faced challenges in meeting its OPEC production quota in recent years due to oil theft, pipeline vandalism, and prolonged underinvestment, reducing its ability to fully benefit even when production limits are eased. Extended periods of weak oil prices could further strain public finances, widen budget deficits, and increase pressure on the naira. In response, the Federal Government has continued to pursue reforms aimed at boosting crude output, expanding domestic refining capacity, and accelerating economic diversification through non-oil exports and improved domestic revenue mobilisation. OPEC+, which brings together the 13-member OPEC group and allied producers such as Russia, controls a significant share of global oil supply, giving its output decisions substantial influence over oil prices and the economic outlook of oil-producing countries, including Nigeria.

Over the past week, the naira traded around the N1,440 per dollar level at the official market, maintaining relative stability supported by improved foreign exchange supply, Central Bank interventions, and the cushioning effect of Nigeria’s external reserves. Within the week, the currency appreciated by N12.53 per dollar, representing an 86 basis point gain week-on-week. It moved within a band of N1,427.00 to N1,445.68 per dollar, recording gains in three out of four trading sessions. Analysts noted that the exchange rate has remained broadly stable when compared with the sharp volatility experienced in the previous year. Meristem Securities observed that although the average exchange rate in 2025 stood at N1,519.63 per dollar, slightly weaker than N1,486.03 per dollar in 2024, volatility eased markedly to 0.53 per cent from 4.58 per cent. This trend was attributed to improved FX liquidity and stronger external buffers. At the official Nigerian Foreign Exchange Market, the naira last traded below the N1,430 per dollar mark on 31 October 2025, when it closed at N1,421.73 per dollar. Analysts attributed the recent stability largely to reforms driven by the Central Bank, including the introduction of the Electronic Foreign Exchange Matching System in December 2024 and the FX Code, both of which enhanced market transparency, improved pricing efficiency, and reduced speculative activity. Nigeria’s external reserves also recorded strong growth in 2025, rising by 10.60 per cent year-to-date to $45.21 billion from $40.9 billion at the end of 2024. Although reserve accumulation was initially weighed down by foreign debt servicing and FX market interventions in the first half of the year, it recovered in the second half on the back of stronger FX inflows from higher trade receipts, increased capital importation, and Eurobond proceeds. Looking ahead, analysts at Meristem projected that the naira would trade within a range of N1,350.00 to N1,528.57 per dollar in 2026. They noted that the official exchange rate is expected to remain largely stable, supported by sustained foreign inflows and a resilient external reserve position. Planned foreign currency-denominated issuances by the Federal Government, as outlined in the Medium-Term Expenditure Framework, are also expected to boost reserves. While oil revenues may remain subdued, inflows from gas and non-oil exports are expected to support reserve levels. In addition, strong foreign portfolio investment inflows, driven by rising investor confidence and potential capital shifts from developed markets, should further strengthen FX liquidity. According to the analysts, these factors should preserve the Central Bank’s capacity to intervene in the FX market and sustain adequate liquidity, thereby supporting naira stability. They added that the parallel market is also expected to remain relatively stable in 2026, reflecting the impact of ongoing FX reforms aimed at improving transparency and curbing speculative activity. The recent issuance of Bureau de Change licences was cited as a further step in strengthening regulatory oversight of the informal market and limiting excessive volatility. Coronation Research shared a similar outlook, projecting that the naira would trade within the N1,400 to N1,500 per dollar range in 2026. The firm attributed this outlook to higher oil production, reduced reliance on imported refined fuel, and improved FX liquidity from stronger export earnings. It cautioned, however, that sustained stability would depend on consistent policy implementation, enhanced investor confidence, fiscal discipline, and continued improvements in capital inflows through a transparent, market-driven FX framework. AIICO Capital also echoed these views in its weekly report, noting that, in the absence of any major shift in FX supply, the naira is expected to trade around current levels. In its outlook for 2026, the Central Bank reaffirmed its commitment to balancing price stability with support for economic growth, stating that appropriate policy tools would be deployed to attract foreign investment and consolidate stability in the foreign exchange market.