Trading activities in Nigeria’s foreign exchange market opened on a measured note on Wednesday, reflecting cautious stability as economic actors return from the festive break.
At the official Nigerian Foreign Exchange Market (NFEM), the naira was quoted at about ₦1,432 to the United States dollar in early trading. This represents a mild softening from levels around ₦1,428 recorded earlier in the week, a movement widely linked to renewed demand for foreign exchange by companies restocking and settling import obligations at the start of the year.
Market participants say the adjustment remains modest and largely expected, given the seasonal lull in demand in late December and the subsequent rebound as full business operations resume. Liquidity conditions in the official window were described as orderly, with no signs of panic buying or sharp distortions.
Parallel Market Signals
In the parallel market, rates continued to trade at a premium, though within a relatively narrow band. Dealers in Lagos and Abuja reported dollar purchases ranging from about ₦1,485 to ₦1,500. While the spread between the official and informal markets persists, it has narrowed considerably compared with the wide swings recorded in previous quarters.
Analysts point to sustained interventions by the Central Bank of Nigeria (CBN), particularly through improved foreign exchange supply and tighter monitoring of authorised dealers, as key factors behind the reduced volatility.
Outlook and Policy Watch
Attention in the market is now shifting to the CBN’s policy posture for the first quarter of 2026. Investors and businesses are watching closely for signals on whether the apex bank will scale up foreign exchange allocations to meet an anticipated rise in retail and corporate demand in the coming weeks.
Barring unexpected developments later in the session, traders expect the naira to close within the ₦1,430 to ₦1,435 range at the official NFEM window, reinforcing the view that the currency is entering the new year on a relatively steady footing.