At the official window, data from the Nigerian Foreign Exchange Market (NFEM) showed the naira opening at ₦1,420.13 to the dollar. By mid-morning, the local currency had appreciated to about ₦1,418.16, representing a gain of roughly 0.31 per cent compared with the previous trading session.
Market analysts attributed the upward movement to increased dollar supply in the official market and a more efficient allocation framework. They also pointed to the central bank’s continued efforts to clear outstanding foreign exchange obligations, which has helped stabilise expectations among businesses and investors.
Traders noted that enhanced transparency within the NFEM has created a more predictable environment for corporate buyers, with the exchange rate largely trading within a narrow and stable band throughout January. This stability, they said, has reduced panic demand and encouraged more orderly market behaviour.
The positive sentiment extended to the parallel market, where the dollar also softened slightly. In major trading hubs across Lagos, including Ikeja and Broad Street, as well as Abuja’s Wuse Zone 4, the greenback exchanged between ₦1,470 and ₦1,485.
According to Bureau De Change operators, the modest narrowing of rates in the parallel market suggests that retail demand is being adequately met by available supply. They added that the speculative pressures often seen at the start of the year have been largely subdued, helped by stronger regulatory oversight and steady inflows from diaspora remittances.
Analysts say the gradual convergence between the official and parallel market rates is one of the key developments to watch in the first quarter of 2026. If current trends persist, the naira is expected to remain relatively resilient, supported by anticipated growth in foreign reserves and signs of improvement in Nigeria’s trade balance.
Attention is now turning to the close of trading for the week, as market participants assess whether the currency’s performance will set a constructive tone for the final week of January.