At the official level, activity in the Nigerian Foreign Exchange Market (NFEM) showed only marginal movements. The naira opened trading at about ₦1,419.29 to the dollar, before price discovery processes guided the rate to around ₦1,419.77. This outcome broadly aligned with the previous session’s closing levels near ₦1,420, underscoring the currency’s controlled movement within a narrow band.
Market analysts attribute this stability to consistent foreign exchange supply and the CBN’s sustained emphasis on transparency in pricing. The bank’s medium-term outlook, which anticipates external reserves rising beyond the $50 billion mark later in the year, has also helped to reinforce confidence among investors and corporates. Unlike earlier January periods marked by sharp volatility, the current environment has been defined by measured trading and limited speculative pressure.
In the parallel market, the naira continued to trade at a premium to the official rate, though the gap remained moderate. Across key commercial centres such as Lagos, Abuja and Kano, the dollar exchanged hands between ₦1,480 and ₦1,485. Operators in the Bureau De Change segment reported steady demand linked to travel and routine business needs, but noted the absence of the aggressive hoarding and speculation that previously strained the local currency.
Improved diaspora remittances and a more predictable inflow of foreign currency through formal banking channels have been identified as key factors supporting this trend. These developments have contributed to a more orderly market structure and reduced pressure on the naira outside official trading windows.
Looking ahead, sentiment around the currency remains cautiously positive. Inflation is projected to ease to about 12.94 percent within the year, while real GDP growth is expected to approach 4.49 percent. Combined with higher crude oil output and indications of a balance of payments surplus, these factors provide a supportive backdrop for exchange rate stability.
Nonetheless, analysts continue to monitor external risks, particularly global oil price movements and domestic production levels, which remain critical determinants of foreign exchange liquidity. While the naira’s current performance suggests a transition into a stabilization phase, sustained gains are expected to depend on the consistency of these underlying fundamentals.