The Naira began the second week of January 2026 amid sustained fluctuations across Nigeria’s foreign exchange markets, as traders and investors closely monitor ongoing liquidity injections by the Central Bank of Nigeria.
At the Nigerian Foreign Exchange Market, NFEM, the local currency showed relative stability during early trading hours. Data obtained from the FMDQ Securities Exchange indicated that the Naira opened trading at approximately 1,424.84 to the United States dollar.
By mid-morning on Friday, January 9, the exchange rate adjusted slightly, with the Naira quoted at 1,426.73 per dollar, reflecting mild intraday movement within the official trading window.
The current performance follows a week characterised by moderate volatility at the NFEM. During that period, the exchange rate moved between a high of 1,433.00 per dollar and a low of 1,415.00 per dollar.
Market analysts attribute the prevailing trend to a relative balance between inflows from autonomous sources and periodic foreign exchange interventions by the CBN, which are aimed at meeting the demands of manufacturers and import-dependent businesses.
In the informal or parallel market, the Naira continues to trade at a wider margin compared to the official window. Information from Bureau De Change operators in Lagos and Abuja shows that the dollar is currently being bought and sold within the range of 1,480 to 1,505 per dollar.
The difference between the official and parallel market exchange rates, commonly referred to as the “premium,” remains a key area of concern for the CBN as it works towards achieving convergence across the foreign exchange market.
Despite the existing disparity between both markets, there has been a noticeable decline in panic buying activities in the parallel market when compared to the final quarter of 2025.
One of the major factors influencing the movement of the Naira is the state of Nigeria’s foreign reserves. Recent reports indicate that reserves have begun to stabilise, giving the central bank increased capacity to support and defend the local currency.
Crude oil production levels have also contributed to the current exchange rate dynamics. Improvements in domestic oil output have boosted foreign exchange inflows, thereby strengthening liquidity within the NFEM.
Monetary policy considerations remain another critical influence on market sentiment. Investors and traders are closely watching for signals from the Monetary Policy Committee, particularly regarding interest rate decisions and inflation management strategies.
As trading activities continue, financial analysts project that the Naira will remain within the range of 1,420 to 1,440 per dollar at the official window, provided there are no major changes in global oil prices or unexpected domestic policy shifts.
