The Nigerian Naira opened the second week of January 2026 with noticeable movements, reflecting early-year liquidity adjustments across both the official and informal foreign exchange markets.
Official Market Performance
At the Nigerian Foreign Exchange Market (NFEM), the Naira showed relative steadiness against the US dollar. Early trading on Monday saw the currency open at about ₦1,426.69 to the dollar, before edging slightly stronger to around ₦1,423.82 per dollar by midday.
This represents an approximate 0.20 per cent appreciation, supported by the Central Bank of Nigeria’s (CBN) continued push for transparent price discovery and adequate foreign exchange supply to meet genuine demands. Analysts note that today’s trading volume will be closely monitored, as it will indicate the extent of corporate dollar demand for January.
Parallel Market Realities
In the parallel market, also known as the black market, the Naira exchanged at higher levels than the official rate. Currency traders in Lagos and Abuja quoted the dollar at between ₦1,475 and ₦1,490.
The disparity between both markets continues to attract attention from economic watchers. While the NFEM serves as the reference point for large transactions, the parallel market remains a key option for retail users and individuals without direct access to official banking channels.
Market Outlook
The mild stability seen at the start of the week is linked to improved oil revenue inflows and the CBN’s sustained monetary tightening policies. Nevertheless, potential pressure looms as importers begin placing first-quarter orders, which could challenge current exchange rate stability.
Market participants are therefore keeping a close eye on possible policy signals from financial authorities, as such measures are expected to shape the Naira’s performance as economic activities pick up pace in the new business year.