Nigeria’s naira is moving closer to its theoretical fair value, signalling improving foreign exchange (FX) stability, stronger policy credibility and easing speculative pressure, according to leading economists and policy analysts. Renowned economist and Managing Director of Financial Derivatives Company (FDC), Mr Bismarck Rewane, estimates the fair value of the naira at approximately ₦1,257 to the US dollar. Using the purchasing power parity (PPP) model, Rewane said the currency remains undervalued by about 11 percent, despite recent gains. He believes that there will be stability in the local currency in 2026 but might average N1,413 to the dollar. FX management is also about managing expectations,” Fasua said, noting that tighter controls have reduced abuse of FX forms and speculative outflows.

Source: Nigerian Tribune February 02, 2026 03:53 UTC