The Nigerian Naira recorded a largely stable performance against the United States Dollar during early trading on Tuesday, January 6, 2026, as the foreign exchange market opened the week on a relatively calm note.
Figures from the Nigerian Foreign Exchange Market (NFEM) indicate that the local currency experienced only minor fluctuations during morning sessions, reflecting cautious optimism among traders and institutional participants. At the official window, the exchange rate was quoted at approximately ₦1,431.47 per dollar, marking a slight improvement compared to levels seen at the start of the year, when rates hovered closer to the ₦1,440 mark.
This marginal strengthening suggests improving liquidity conditions, supported by ongoing Central Bank interventions and renewed foreign portfolio inflows into the domestic market.
Parallel Market Trends
Meanwhile, the parallel market continued to trade at a noticeable premium. Bureau De Change operators across major cities such as Lagos, Abuja, and Kano reported Dollar transactions within the ₦1,495.00 to ₦1,510.00 range.
The divergence between the official and informal exchange rates remains a focal point for both policymakers and investors. Analysts note that while the spread persists, it has not widened significantly, indicating a degree of convergence as the Central Bank of Nigeria pushes forward with reforms aimed at improved price discovery and deeper market liquidity.
Drivers of Stability
Market analysts attribute the current stability to a balanced interplay of demand and supply factors. Demand for foreign exchange linked to school fees, travel, and seasonal business imports has been largely offset by consistent FX injections and a gradual return of offshore investment interest.
Despite the relative calm at the official window, economists caution that exchange rate movements continue to have a direct impact on inflation and the cost of imported goods, keeping households and businesses sensitive to even small currency swings.
As the first full trading week of 2026 unfolds, market participants remain watchful for policy cues and external inflows that could shape the Naira’s trajectory in the weeks ahead.
