The Centre for the Promotion of Private Enterprises (CPPE) has disclosed that the naira traded within the range of N1,340 to N1,430 against the dollar in the official market in the first quarter of 2026.
Chief Executive Officer of CPPE, Muda Yusuf, made this known in a weekend statement while reviewing Nigeria’s economic performance in Q1 and providing an outlook for the second quarter.
According to him, the relative stability of the naira during the period helped to moderate imported inflation and boost investor confidence.
He attributed the exchange rate stability to improved external reserves, which climbed to about $50 billion as of March 11, 2026.
Despite the gains, Yusuf noted that the cost-of-living crisis remained severe for many Nigerians, driven by high energy costs, insecurity, and persistent structural challenges within the economy.
Looking ahead, he said the outlook for Q2 is cautiously optimistic but faces notable risks, particularly from ongoing geopolitical tensions involving Iran, the United States, and Israel, as well as the build-up to Nigeria’s 2027 elections.
“The naira, which experienced substantial volatility during the reform transition period, stabilized within a relatively narrow band of about N1,340–N1,430 per dollar in the official market during Q1 2026. This stability has helped to moderate imported inflation and restore a measure of business confidence,” he said.
He added, “The cost-of-living crisis remains pronounced. Energy costs are still elevated, concerns around insecurity persist, and deep-seated structural rigidities continue to constrain productivity and investment.
“As the economy transitions into the second quarter of 2026, the outlook is cautiously optimistic but not without considerable risks.
“The trajectory of macroeconomic stability is vulnerable to external shocks—particularly evolving geopolitical tensions—while the intensifying political cycle ahead of the 2027 elections could pose risks to policy focus and reform momentum.”
Yusuf further advised the Central Bank of Nigeria to suspend further monetary policy tightening to avoid worsening inflationary pressures on citizens.
