In a ringing endorsement that has rattled currency watchers, 156-year-old German financial powerhouse Deutsche Bank has declared that Nigeria’s naira is on the path to even greater glory.
The bank has now added the naira to its elite global forex monitor, branding the currency “undervalued” and primed for further appreciation.
Naira’s Stunning Comeback
The verdict comes as the naira continues its dramatic turnaround story. The currency closed yesterday at N1,333.72 per dollar, having gained nearly 8 per cent against the greenback since the start of 2026.
Nigeria’s foreign reserves have also surged above a hefty $55 billion, giving the Central Bank unprecedented firepower to defend the currency.
In a note to global investors, Deutsche Bank strategists, quoted by Bloomberg, said the naira offers “attractive carry alongside real rates,” backed by Nigeria’s sharply improving external position.
The bullish call aligns with a recent Bloomberg survey which projected the naira is headed for its best performance in almost a decade, with a full-year gain of 12 per cent to close at N1,290 per dollar. The survey cited rising oil receipts, booming diaspora remittances and improved forex liquidity from President Bola Ahmed Tinubu’s reforms.
ALSO READ: Bloomberg survey: Naira projected to gain 12%, strongest annual performance since 2018
Fiscal Cloud On The Horizon
But the bank warned the party is not without risks.
“The principal risk to the outlook is from the fiscal side,” Deutsche Bank cautioned, pointing to the Debt Management Office’s heavy bond issuance calendar for this quarter which signals “elevated issuance levels.”
With general elections due in January and February, the bank expects government spending to spike, warning that fiscal slippages could threaten the naira’s rally more than the politics itself.
Reforms Finally Paying Off
For years dismissed as volatile and over-managed, the naira is now emerging as a reform success story. Bloomberg noted that increased dollar inflows are helping to insulate the currency from the usual pre-election panic that has historically triggered capital flight.
If Deutsche Bank’s bet pays off, Nigeria could be looking at its strongest currency performance since 2018 – a powerful validation of its bold economic reset.
