The Naira sustained its upward stability against the United States Dollar on Thursday morning, January 29, 2026, extending gains recorded earlier in the week at the official foreign exchange market. The local currency’s performance continues to draw support from improved dollar supply and refinements in the Central Bank of Nigeria’s foreign exchange pricing framework.
At the Nigerian Foreign Exchange Market, trading opened with the Naira exchanging at about 1,395.09 to the dollar. By mid-morning, the rate experienced slight movement, settling around 1,396.98 per dollar.
This trend reflects a continuation of the recent appreciation that saw the currency strengthen below the 1,400 mark over the past two days. Analysts attribute the improvement to policy adjustments by the CBN, particularly the effectiveness of the Electronic Foreign Exchange Matching System and the steady growth of the country’s external reserves. The resolution of long-standing foreign exchange backlogs has also helped restore confidence among investors, contributing to a calmer and more transparent market.
In contrast, the parallel market has reacted more cautiously to the gains recorded at the official window. Across major cities such as Lagos, Abuja and Kano, the dollar is being exchanged within the range of 1,468 to 1,480.
Although the disparity between the official and parallel markets persists, the margin has narrowed considerably compared with levels seen earlier in the month. Operators in the Bureau De Change segment note that demand remains largely driven by personal travel needs and small business transactions, with little evidence of speculative activity. The relative calm in the informal market suggests that exchange rates may be approaching a more stable level as January comes to an end.
Current trading indicators show the official market opening at 1,395.09 per dollar, trading around 1,396.98, while the parallel market hovers between 1,468 and 1,480.
Looking ahead, market watchers remain cautiously optimistic. They believe that sustained oil production and consistent intervention by the CBN could help the Naira consolidate around the 1,390 to 1,400 band in the days ahead. Attention is now focused on the week’s closing figures, which are expected to influence currency sentiment going into February.
