Nigeria’s currency, the naira, recorded mixed performance in the first week of 2026, showing a modest recovery from its closing level at the end of 2025, even as sustained demand for the U.S. dollar continued to weigh on the market.
At the official Nigerian Foreign Exchange Market (NFEM) window, the naira is currently trading at an average of N1,441.85 to the U.S. dollar, according to market data from the Central Bank of Nigeria (CBN).
The currency experienced volatile movements during early trading hours, touching a low of N1,437.10 per dollar before stabilising around its current level.
Parallel Market Trades at Premium
Meanwhile, the parallel market continues to trade at a premium above the official rate. Independent Bureau De Change (BDC) operators and street traders in major commercial centres such as Lagos, Abuja, and Kano are quoting the dollar between N1,455 and N1,465, depending on transaction size and location.
Market analysts note that the persistent gap between the official and parallel markets reflects ongoing demand pressures and limited dollar supply.
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Factors Influencing the Exchange Rate
Investors and currency watchers are closely monitoring the CBN’s foreign reserve position and any potential policy interventions aimed at boosting market liquidity.
Following the festive season, demand for foreign exchange has increased, particularly from manufacturers and importers seeking to restock inventories ahead of the first quarter of 2026. This seasonal demand has contributed to renewed pressure on the naira.
Despite the slight recovery recorded so far this year, analysts caution that exchange rate stability will depend largely on sustained dollar inflows, prudent monetary management, and broader economic conditions.
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