The Naira remained largely stable but continued to face pressure against the United States Dollar at the mid-week opening of the foreign exchange market, reflecting ongoing volatility in the early weeks of 2026.

Data obtained from the Nigerian Foreign Exchange Market and multiple parallel market locations nationwide indicate that the local currency is still adjusting to fluctuating market dynamics that have shaped trading conditions since the start of the year.

At the official trading window, the Nigerian Foreign Exchange Market, the Naira opened the session with a marginal depreciation against the dollar.

Early trading figures showed the exchange rate hovering around 1,426.67 NGN per 1 USD, compared with a closing rate of about 1,424.50 NGN recorded during the previous trading session on January 13.

Analysts attribute the mild pressure on the Naira to sustained demand for foreign currency, despite efforts by the Central Bank of Nigeria to boost market liquidity.

They noted that while the apex bank has intensified interventions, demand for the dollar remains elevated due to international trade obligations and external debt servicing requirements.

Market watchers expect the official “closing rate” for the day to settle within the range of 1,420 NGN to 1,430 NGN, depending on the scale of interventions and the volume of trades executed later in the day.

In the informal foreign exchange segment, commonly referred to as the “black market,” the Naira traded at a wider spread compared to the official window.

Information from Bureau De Change operators operating in major commercial centres such as Lagos, including Ikeja and Broad Street, Abuja’s Wuse Zone 4, and Kano, revealed that the dollar was purchased at 1,465 NGN and sold at 1,475 NGN.

The gap between the official and parallel market rates, widely described as the “FX gap,” is estimated at approximately 50 Naira.

Although this differential has narrowed significantly when compared with levels recorded in previous years, the remaining disparity continues to encourage speculative activities by small businesses and individuals seeking faster access to foreign currency.

Market sentiment is currently being shaped by a combination of domestic and external factors affecting supply and demand conditions.

Recent assessments point to a stable outlook for Nigeria’s foreign reserves, which provides the Central Bank of Nigeria with some “firepower” to support and defend the Naira when necessary.

Inflationary pressures also remain a key concern, as the National Bureau of Statistics continues to monitor core inflation, particularly in relation to the rising cost of imported goods.

Additionally, trading activity at the Nigerian Foreign Exchange Market has picked up moderately this week, as companies conclude import transactions for the first quarter of the year.

The Central Bank of Nigeria has continued to advise Nigerians to channel their foreign exchange transactions through official banking platforms, stressing that this approach is critical to enhancing transparency and supporting the stability of the national currency.