The Nigerian naira opened the mid-week foreign exchange market under renewed pressure, trading around ₦1,426.67 to the US dollar, a development that has reignited concerns about volatility in early 2026.
Market data from the Nigerian Foreign Exchange Market (NFEM) and signals from the parallel market show that while the naira remains relatively stable on paper, demand for dollars is still outpacing supply, keeping traders and businesses on edge.
Official Market: Naira Slips Slightly
At the official window, the naira opened marginally weaker against the greenback.
Early trading placed the exchange rate at ₦1,426.67/$1, compared to the previous closing rate of about ₦1,424.50 recorded on January 13.
According to analysts, the slight dip reflects:
- Persistent dollar demand for imports
- External debt obligations
- Corporate FX settlements for Q1 transactions
Despite the pressure, market watchers expect the official rate to close within the ₦1,420–₦1,430 band, depending on the level of intervention by the Central Bank of Nigeria and overall market liquidity.
Parallel Market: Dollar Nears ₦1,480
Away from the official window, the naira continues to struggle.
Checks from Bureau De Change operators across Lagos, Abuja, and Kano show:
- Dollar buying rate: ₦1,465
- Dollar selling rate: ₦1,475
Although the gap between the official and parallel markets has narrowed compared to previous years, the ₦45–₦50 spread is still wide enough to fuel speculative trading, especially among small businesses and individuals seeking quick FX access.
What’s Driving the Pressure?
Several factors are shaping current market sentiment:
- Sustained inflation, increasing demand for imported goods
- Steady but fragile foreign reserves, giving the CBN limited room to defend the naira
- Rising import-related FX demand as companies prepare for first-quarter settlements
While trading activity at the NFEM has improved slightly, dollar scarcity in some segments continues to weigh on the local currency.
CBN Issues Fresh Reminder
Amid the volatility, the Central Bank of Nigeria has again urged Nigerians to conduct foreign exchange transactions through official banking channels, stressing that this improves transparency and supports long-term currency stability.
Bottom Line
The naira may look calm on the surface, but pressure is clearly building underneath. With inflation, import demand, and speculative trading still in play, all eyes are now on whether CBN intervention can keep the currency within control — or if another sharp move is looming.
💬 Do you think the naira can hold this range, or is another slide inevitable?
