Nigeria’s currency entered the first full trading week of 2026 on an uncertain footing, reflecting ongoing adjustments in the foreign exchange market. As of the morning of January 5, 2026, the Naira showed mild signs of recovery compared to its year-end position, although pressure from sustained Dollar demand remains evident across market segments.
At the official Nigerian Foreign Exchange Market (NFEM), where transactions are overseen by the Central Bank of Nigeria (CBN), the Naira is exchanging at an average rate of ₦1,441.85 to the US Dollar. Trading activity earlier in the day was marked by volatility, with the currency briefly strengthening to around ₦1,437.10 before settling near its current level. Analysts say liquidity levels within the official window continue to play a central role in price movements, especially as authorities push forward with efforts to harmonise exchange rates.
Outside the official channel, the parallel market continues to command a premium. In major commercial centres such as Lagos, Abuja, and Kano, Bureau De Change operators and street traders are selling the Dollar within the range of ₦1,455 to ₦1,465, depending on transaction size and location. While the disparity between official and parallel rates persists, recent weeks have seen a slight narrowing of the gap, a development observers attribute to tighter monetary controls and gradual market convergence.
Several factors are shaping current exchange rate behaviour. The return of full-scale economic activity after the festive period has triggered renewed Dollar demand from manufacturers and importers seeking to replenish inventories for the first quarter of the year. At the same time, market participants remain watchful of Nigeria’s foreign reserve position and any potential interventions by the CBN aimed at boosting Dollar supply and stabilising the market.
As trading activity gathers pace in the coming days, the Naira’s direction is expected to remain sensitive to policy signals, liquidity conditions, and broader investor sentiment at the start of 2026.