The Naira maintained a steady position against the United States Dollar in the early hours of Monday, January 19, 2026, as the market opened for the new week.
This stability follows a period of consolidation in the foreign exchange market, supported by improved external reserves and recent monetary policy adjustments.
At the Nigerian Foreign Exchange Market, the Naira opened the day with an average rate of 1,420.59 per dollar. This represents a slight appreciation from the closing rates seen late last week, where the currency hovered around 1,422. Trading data from the early morning session indicates that the currency reached a high of 1,422.59 before settling lower, reflecting a 0.14% improvement in value during the first few hours of trade.
Financial analysts attribute this relative calm in the official window to the Central Bank of Nigeria’s continued efforts to maintain liquidity. With external reserves currently projected to exceed 50 billion dollars later this year, investor confidence remains higher than in previous quarters.
In the parallel market, commonly referred to as the black market, the exchange rate showed a similar trend of stability, though it continues to trade at a slight premium compared to the official window. Bureau De Change operators in Lagos and Abuja reported buying rates between 1,465 and 1,470 per dollar, while selling rates ranged from 1,472 to 1,475.
Despite the persistent gap between the official and parallel markets, the volatility that characterized the market in 2024 and 2025 has significantly eased. This narrowing spread is widely seen as a result of the unified exchange rate reforms and increased diaspora remittances.
Meanwhile, the Naira continues to experience a complex trading environment against the British Pound as markets opened this Monday, January 19, 2026. Data from both the official Nigerian Foreign Exchange Market (NFEM) and the informal parallel market indicate a persistent gap between regulated and open-market rates.
In the official window, the British Pound began the day’s session with moderate volatility. As of the early morning hours, the exchange rate on the Nigerian Foreign Exchange Market was recorded at approximately 1,903.36 Naira per Pound.
This reflects slight fluctuations from the opening price of 1,901.50 Naira earlier today. Throughout the early session, the rate reached a high of roughly 1,907.15 Naira before stabilising near the 1,903 mark. The NFEM continues to be the primary channel for government-approved transactions, though liquidity remains a focal point for institutional investors.
The parallel market, often referred to as the black market, continues to trade at a premium compared to the official rate. While the NFEM holds near the 1,900 Naira threshold, informal traders in major hubs like Lagos, Abuja, and Kano are quoting rates significantly higher.
Currently, the British Pound is trading in the parallel market at a range between 2,150 and 2,210 Naira. This spread of over 250 Naira between the official and unofficial segments highlights the ongoing demand for foreign exchange that exceeds the current official supply.
Several economic factors are contributing to the current exchange rate dynamics for both currencies. Investors are keeping a close watch on Nigeria’s foreign reserve levels, which dictate the Central Bank’s ability to intervene in the market. Local inflation continues to impact the purchasing power of the Naira, driving individuals toward stronger “hard” currencies like the Dollar and Pound. Market participants are awaiting further signals from the Central Bank regarding interest rate adjustments, which often correlate with currency stability.
Government officials and economists remain optimistic about the currency’s performance for the remainder of 2026. Finance Minister Wale Edun recently noted that the “consolidation phase” of the economy is yielding results, with inflation expected to average around 16.5% this year—a sharp decline from the peaks seen two years ago.
The Central Bank’s Economic Policy Directorate has also projected a stabilisation of the Naira, supported by higher oil receipts and stronger structural reforms. Market participants are keeping a close eye on the upcoming monetary policy meetings, which are expected to provide further direction for interest rates and foreign exchange management.
As the trading day progresses, the gap between the NFEM and the parallel market will likely remain a key indicator of the Naira’s overall health against major foreign currencies.
