June 16, 2026
The International Monetary Fund (IMF) has said that the naira remains significantly undervalued despite recent gains against the United States dollar following Nigeria’s foreign exchange reforms.
In its latest Article IV consultation report on Nigeria, the Washington-based lender stated that its Real Effective Exchange Rate (REER) assessment showed the local currency was still trading below levels supported by the country’s economic fundamentals.
The REER is a measure of a currency’s value against those of major trading partners after adjusting for inflation.
According to the IMF, Nigeria’s REER appreciated by 32 percent in 2025, even as the nominal effective exchange rate (NEER) weakened by 5.2 percent during the same period.
