The naira edged lower at the official foreign exchange market in the second week of January 2026, closing at N1,421 per dollar on Wednesday.

Data published on the Central Bank of Nigeria website on Wednesday confirmed the movement.

Analysts attribute the mild depreciation to market dynamics, noting that stronger reserve buffers, ongoing FX reforms, and structural improvements are expected to support exchange rate stability throughout 2026.

The naira traded at N1,416 per dollar on Tuesday and N1,428 per dollar on Monday, making Wednesday’s close of N1,421 the first notable mid-week slip in the second week of 2026.

Official market data indicates that the currency’s mid-week movement remains within a narrow band, suggesting moderated volatility compared with previous years.

It was earlier reported that the naira had weakened to N1,431 per dollar on January 2, the first trading day of the year, reflecting post-holiday foreign exchange demand and ongoing supply adjustments.

At the parallel market, the naira weakened, trading between N1,490 and N1,495 per dollar on Wednesday, up from N1,470 per dollar the previous day.

The widening gap between the official and informal markets highlights persistent unmet demand for foreign exchange, particularly for travel allowances, imports, and other invisible transactions.

Despite the widening gap, market watchers say overall volatility has moderated, reflecting growing confidence in Nigeria’s evolving foreign exchange framework.

Nigeria’s FX reserves edged up slightly to $45.62 billion on Tuesday, from $45.60 billion on Monday, providing additional support to the naira.

The CBN projects reserves to rise to around $51.04 billion in 2026, up from an estimated $45.01 billion in 2025, buoyed by easing FX pressures, higher oil earnings, sovereign bond issuances, and increased diaspora remittance inflows.

The apex bank also highlighted developments in the domestic refining sector as a key structural support for the naira.