The Naira closed January 2026 on a firmer note in the official foreign exchange market, settling at N1,391 to the dollar, an improvement from N1,431/$ at the start of the month.
Data from the Central Bank of Nigeria (CBN) show that the currency traded mostly below the N1,425/$ threshold throughout January, pointing to relative stability supported by improved market liquidity. The performance extends gains recorded at the close of 2025, signalling a cautiously positive start to 2026 for Nigeria’s currency.
On a month-on-month basis, the naira strengthened from N1,429/$ on December 31, 2025, representing a 7.4 per cent appreciation from the N1,535/$ recorded on the final trading day of 2024. Year-on-year, the January 2026 close compares favourably with N1,475/$ at the end of January 2025, underscoring a gradual recovery trend.
The parallel market mirrored this improvement, with the naira closing at N1,453/$, up from an opening rate of N1,474/$ in January. The narrowing spread between the official and parallel market rates suggests easing speculative pressure and growing confidence in the foreign exchange market.
Analysts attribute the naira’s January performance to a combination of stronger external buffers and sustained policy intervention. Nigeria’s foreign exchange reserves rose from $45.56 billion at the beginning of the month to $46.11 billion by month-end, crossing the $46 billion mark for the first time in about eight years. The higher reserve position enhances the CBN’s capacity to meet FX demand and stabilise the market when required.
While inflationary pressures and external risks persist, the January data point to early stability in 2026 as monetary authorities continue targeted interventions.
Economic analysts and Bureau De Change (BDC) operators project further gains this year, supported by rising FX inflows, sustained monetary tightening and ongoing structural reforms. Market experts also cite renewed confidence in the FX framework, driven by CBN reforms such as exchange rate unification, improved transparency in FX allocation and tighter oversight of market operators, which have reduced arbitrage and speculative demand.
In its 2026 macroeconomic outlook, CardinalStone projects the naira could trade within N1,350–N1,450/$ this year. January’s outcome suggests that policy consistency and reserve accretion are beginning to restore confidence in Nigeria’s foreign exchange market, setting the tone for a potentially steadier 2026.
