By Ayomide Otitoju
The naira experienced mixed movements in the first week of 2026, posting a marginal recovery from its year-end close but remaining under pressure amid sustained demand for the US dollar.
At the Nigerian Foreign Exchange Market (NFEM), the official trading window of the Central Bank of Nigeria (CBN), the naira exchanged at an average of ₦1,441.85 to the dollar. Trading was volatile in the early hours, with the currency briefly strengthening to ₦1,437.10 before easing and stabilising around current levels.
In contrast, the parallel market continued to trade at a premium to the official rate. Independent Bureau De Change (BDC) operators and street traders in key cities, including Lagos, Abuja and Kano, quoted the dollar between ₦1,455 and ₦1,465, depending on transaction size and location.
Market participants are closely monitoring the CBN’s foreign reserve position and the likelihood of further interventions to ease dollar liquidity.
Analysts note that post-festive demand from manufacturers and importers seeking to restock inventories for the first quarter of 2026 has increased pressure on the foreign exchange market, contributing to the sustained demand for dollars.
