The Nigerian naira opened trading for 2026 on a steady footing at the official foreign exchange window, even as a modest premium persisted in the parallel market, reflecting lingering cash-driven demand outside formal channels.
Data from the Nigerian Foreign Exchange Market (NFEM) shows that the local currency traded at an average of N1,445.99 to the United States dollar on January 1, signalling relative stability after closing the final session of 2025 at approximately N1,445.24.
The performance capped a period of mild appreciation recorded toward the end of December, when the exchange rate fluctuated within the N1,445–N1,470 band.
Market analysts attribute the calm at the official window to sustained interventions and policy adjustments by the Central Bank of Nigeria (CBN), particularly its emphasis on liquidity management and transparency.
The apex bank has continued to prioritise legitimate foreign exchange demands, including payments for education, healthcare and other invisible transactions, through regulated banking platforms.
In contrast, the parallel market maintained higher exchange rates, with the dollar selling between N1,480 and N1,510 depending on transaction size and location.
Traders note that seasonal travel, small-scale imports and the preference for cash transactions contributed to the premium, which typically widens during festive and holiday periods.
Despite this divergence, the spread between the official and parallel markets has narrowed significantly compared to previous years, averaging between 3 and 5%.
Financial experts view this as a sign of improved confidence in the formal FX framework and reduced speculative pressure.
Looking ahead, the naira’s trajectory in 2026 is expected to depend largely on global crude oil prices, foreign exchange inflows and the consistency of ongoing monetary reforms.
The CBN has expressed optimism that recent policy measures will continue to attract private investment, ease FX constraints and further stabilise the currency.
Economists suggest that if current trends persist, the naira could consolidate further in the coming months, narrowing arbitrage opportunities and offering businesses a more predictable operating environment as the year unfolds.
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