The Nigerian naira began the first full trading week of 2026 on a mixed note, recording modest gains in some segments of the foreign exchange market while still facing sustained pressure from strong demand for the United States dollar.
At the official Nigerian Foreign Exchange Market window, where transactions are supervised by the Central Bank of Nigeria, the naira traded at an average rate of 1,441.85 to the dollar on the morning of January 5. Trading opened with some volatility, with the currency briefly appreciating to around 1,437.10 before settling near its current level.
Analysts say liquidity conditions at the official window continue to play a central role in determining pricing, as authorities push ahead with efforts to harmonise exchange rates.
In the parallel market, the naira continued to exchange at weaker levels compared with the official rate. Reports from major commercial centres including Lagos, Abuja and Kano indicate that the dollar was being sold between 1,455 and 1,465, depending on transaction size and location.
Despite the premium, market watchers note that the spread between the two markets has narrowed slightly in recent weeks, suggesting gradual alignment supported by tighter monetary measures.
Market participants attribute the latest movements to the return of full economic activity after the holiday period. Demand from importers and manufacturers seeking foreign exchange to replenish stocks for the first quarter has remained strong, keeping pressure on the local currency. Attention is also focused on the Central Bank’s foreign reserve position and the possibility of further interventions aimed at easing liquidity and stabilising the market.
