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The Nigerian naira began the first full trading Friday of 2026 on a relatively stable note across both the official and parallel foreign exchange markets, offering cautious optimism to investors and market watchers.
Financial analysts are closely observing early-year movements as the Central Bank of Nigeria (CBN) continues its push for effective price discovery and a narrower gap between exchange rate windows.
Official Market Performance
At the Nigerian Foreign Exchange Market (NFEM), the naira held steady against the United States dollar. As of the morning of Friday, January 2, 2026, the official exchange rate stood at ₦1,446.62 per dollar, based on available market data.
This stability follows a gradual recovery by the local currency in recent months. Over the past 12 months, the naira has appreciated by approximately 6.43 per cent at the official window, rebounding from its historic low of ₦1,717.50 recorded in late 2024.
Market participants note that liquidity remains a key focus as the holiday season ends and corporate demand for foreign exchange resumes.
Parallel Market Trends
In the parallel (informal) market, trading activity reflects slightly higher rates, consistent with periods of renewed economic activity. While the official rate remains anchored around the ₦1,446 level, Bureau De Change operators and informal traders are quoting rates that respond more directly to immediate retail demand.
However, analysts point out that the spread between the official NFEM rate and the parallel market has narrowed significantly compared to previous years. This improvement is widely attributed to enhanced transparency in the official market and sustained interventions by monetary authorities.
Economic Outlook and Key Drivers
Several factors are shaping exchange rate movements as 2026 begins:
- Foreign Reserves: Recent reports suggest that Nigeria’s foreign reserves remain stable, giving the CBN buffers to manage short-term volatility.
- Oil Revenue: As Nigeria’s main source of foreign exchange, steady crude oil production and global oil prices continue to support the naira.
- Monetary Policy: Investors are looking ahead to the first Monetary Policy Committee (MPC) meeting of the year for signals on interest rates and inflation control measures.
As trading continues today, volatility is expected to remain muted. However, the full resumption of business activities next week may offer clearer direction for the naira’s performance in the opening quarter of 2026.
