Nigeria Vice President Kashim Shettima revealed on Tuesday, February 24, 2026, that the Central Bank of Nigeria (CBN) intentionally acted to slow down the appreciation of the naira currency.
While the general public has long anticipated the ₦1,000/$1 milestone—a target recently championed by Aliko Dangote—the CBN’s intervention on Monday suggests that a “flash appreciation” could be as damaging to the economy as a sudden devaluation.
The “Volatility” Trap: Why Speed Kills
The Vice President noted that the Naira was on track to hit ₦1,000 within “weeks,” but the CBN intervened to ensure “market stability.” In central banking, excessive volatility in either direction is a red flag:
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The Importer’s Dilemma: Sudden, rapid appreciation makes it difficult for manufacturers to price their goods. If a company bought raw materials at ₦1,400/$ and the rate drops to ₦1,000/$ in a week, they face massive inventory losses that could lead to layoffs.
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Government Revenue: As Aliko Dangote previously noted, the government is in a “Catch-22.” A stronger Naira means the Federal Account receives fewer Naira for every dollar of oil sold, potentially creating a budget deficit for the three tiers of government.
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Speculative Whiplash: Rapid movement encourages “panic selling” followed by “panic buying,” which prevents the price discovery required for long-term investment.
The “Wake-Up Call” for Dollar Hoarders
Shettima’s comments served as a direct warning to political and business leaders who have been “stockpiling dollars.”
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Market Sentiment: By showing that the CBN has the “firepower” to move the rate at will, the bank is signaling that the era of “betting against the Naira” is over.
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The “Acceleration” Phase: Shettima noted that while 2025 was the year of stabilization, 2026 marks the year of acceleration. With Nigeria securing 5 of the 7 largest investment decisions made in Africa last year, the focus has shifted to making the currency attractive for Foreign Direct Investment (FDI).
Macroeconomic Pillars Supporting the “₦1,000” Target
Despite the “strategic braking,” the fundamentals suggest the ₦1,000 target is still the destination, just at a more measured pace:
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Reserves at $50.45bn: With a 13-year high in external reserves, the CBN can effectively “choose” the rate it wants to maintain.
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Refining Gains: The Dangote Refinery’s shift to domestic supply is continuously reducing the monthly demand for dollars by approximately $1.5 billion.
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Interest Rates: At 26.5% (MPR), the Naira remains one of the most attractive “carry trade” currencies in the world, drawing in foreign portfolio capital.
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