Momentum in Nigeria’s foreign exchange market strengthened at the start of the final week of January 2026, with the Naira recording a notable appreciation at the official trading window. The improvement reflects a combination of better market liquidity and sustained policy interventions by the Central Bank of Nigeria (CBN), as participants increasingly focus on the narrowing gap between official and informal exchange rates.
Trading at the Nigerian Foreign Exchange Market (NFEM) opened on Monday, January 26, with the Naira firming up against the United States dollar during early sessions. The local currency settled at approximately ₦1,413.41 per dollar, marking a clear improvement from the ₦1,421.90 closing rate recorded at the end of the previous week.
Analysts attribute the currency’s renewed strength to several reinforcing factors. Key among them is the gradual clearance of foreign exchange backlogs, alongside steady inflows from crude oil exports and foreign portfolio investments. These inflows have supported liquidity conditions and reduced pressure on corporate demand. Market observers also note that the current price discovery mechanism within the NFEM continues to enhance transparency, helping to stabilize transactions and build confidence among businesses and investors.
The relative calm in the official market has been echoed in the parallel market, commonly referred to as the black market. Across major trading centres such as Lagos, Abuja, and Kano, the dollar is currently exchanging within a band of ₦1,475 to ₦1,490. Although the parallel market still trades at a premium to the official rate, the differential remains considerably narrower than levels seen during periods of heightened volatility.
Bureau De Change operators report that retail demand—particularly for personal travel allowances and small-scale business needs—is being adequately met by available supply. This balance has so far prevented speculative pressures and sharp intraday swings in early trading, reinforcing the sense of short-term stability across both exchange rate windows.
At a glance, market indicators reflect the following positioning:
- NFEM (Official Rate): ₦1,413.41 per dollar
- Parallel Market Range: ₦1,475 – ₦1,490 per dollar
- Key Drivers: Improved liquidity, sustained oil revenue inflows, and a more transparent price discovery framework
Looking ahead, traders and analysts will be watching intraday volumes and settlement trends in the NFEM to assess whether the current gains can be sustained through the remainder of the quarter. With Nigeria’s 2026 macroeconomic outlook projecting easing inflationary pressures and steady GDP growth, expectations are that the Naira will maintain a largely range-bound but stable performance in the near term, barring any external shocks.