The Nigerian naira sustained its positive trajectory against the United States dollar in early trading on Thursday, January 29, 2026, extending the gains recorded earlier in the week at the official foreign exchange window. The local currency continues to draw support from improved market liquidity and the Central Bank of Nigeria’s refined price discovery framework, reinforcing cautious optimism across the financial market.
At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at approximately N1,395.09 to the dollar. By mid-morning, the exchange rate experienced mild intraday movements before settling around N1,396.98 per dollar. The relatively narrow range reflects increased stability in the official market and a continuation of the bullish trend observed over the past 48 hours, during which the naira successfully traded below the psychologically significant N1,400 mark.
Market analysts attribute the sustained appreciation largely to recent policy interventions by the Central Bank of Nigeria (CBN). Key among these is the strengthened performance of the Electronic Foreign Exchange Matching System (EFEMS), which has enhanced transparency and efficiency in FX transactions. In addition, the steady rise in Nigeria’s external reserves has helped improve confidence among market participants. Analysts also point to the clearance of longstanding foreign exchange backlogs as a major confidence booster, encouraging increased participation by foreign investors and reducing uncertainty in the market.
While the official market has recorded notable gains, the parallel market has reacted more cautiously. In major commercial centres such as Lagos, Abuja, and Kano, the dollar was exchanged within a range of N1,468 to N1,480. Although a gap persists between the official and informal rates, the premium has narrowed significantly compared to levels seen earlier in January.
Bureau De Change operators note that demand in the parallel market is largely driven by routine needs such as personal travel allowances and small-scale import transactions. Importantly, they report a marked absence of speculative activity, which had previously contributed to sharp volatility. This relative calm suggests that the informal market may be approaching a more sustainable equilibrium as January draws to a close.
A snapshot of Thursday’s trading highlights the ongoing convergence trend. The naira opened at N1,395.09 per dollar at the NFEM, eased slightly to N1,396.98 by mid-morning, while the parallel market traded within the N1,468–N1,480 band.
Looking ahead, the outlook for the naira remains cautiously positive for the rest of the week. Financial experts believe that continued stability in crude oil production, combined with the CBN’s sustained intervention strategy, could allow the currency to consolidate within the N1,390–N1,400 range. Attention is now focused on the week’s closing figures, which are expected to set the tone for the naira’s performance heading into February.