The naira has kicked off the year with its strongest rally in 13 years, mirroring an early surge in 2024 that was ultimately undone by foreign investors cashing out. But this time, the forces at play suggest the story may unfold differently.
Since December 2024, the naira has gained 9 percent, strengthening from N1,662/$ on Dec. 2 to N1,509/$ on Feb. 13, the biggest gain among African currencies, according to BusinessDay data.
In January alone, it appreciated 4 percent (N63.14), hitting a seven-month high of N1,478.22/$. The last time the currency appreciated in the month of January was in 2012.