The Nigerian Naira held a stable but pressured position against the United States Dollar at the mid-week opening of the foreign exchange market. Information from the Nigerian Foreign Exchange Market (NFEM) and different parallel market locations nationwide shows that the local currency is still contending with the volatility that has marked the early months of 2026.
Official Market Performance
At the official trading window, referred to as the Nigerian Foreign Exchange Market (NFEM), the Naira began the session with a marginal decline. Early morning figures showed the exchange rate hovering around 1,426.67 NGN per 1 USD. This comes after a closing rate of about 1,424.50 NGN recorded in the previous session on January 13.
Market analysts say that although the Central Bank of Nigeria (CBN) has taken steps to boost liquidity, demand for the greenback for international trade and debt servicing remains strong. The official “closing rate” for today is projected to fall within the 1,420 NGN to 1,430 NGN range, depending on the scale of interventions and trade executions later in the day.
Parallel Market Trends
In the informal or parallel market, commonly called the “black market,” the Naira traded at a broader margin. Updates from Bureau De Change (BDC) operators in key centres such as Lagos (Ikeja and Broad Street), Abuja (Wuse Zone 4), and Kano show the dollar being bought at 1,465 NGN and sold at 1,475 NGN.
The difference between the official and parallel markets, often described as the “FX gap,” is currently estimated at about 50 Naira. Although this gap has reduced considerably compared to past years, the ongoing disparity still fuels speculative activities among small businesses and individuals looking for faster access to foreign currency.
Key Market Indicators
Current market sentiment is shaped by several elements:
Foreign Reserves: Recent reports point to a stable outlook for Nigeria’s external reserves, giving the CBN some “firepower” to support the currency.
Inflationary Pressure: As the National Bureau of Statistics (NBS) closely monitors core inflation, the rising cost of imported goods remains a major concern for the federal government.
Trade Volume: Activity at the NFEM has recorded a moderate rise this week as companies conclude import orders for the first quarter of the year.
The CBN continues to advise the public to use official banking channels for their foreign exchange transactions in order to promote market transparency and help sustain the stability of the national currency.
