The naira weakened to an intraday low of ₦1,424 per dollar at the official foreign exchange window on Monday, reflecting relatively subdued demand conditions as the Nigerian FX market begins the new year.
Data from the Central Bank of Nigeria (CBN) showed that the official exchange rate closed at ₦1,429.31 per dollar, representing a modest appreciation of 11 basis points on the day, despite reduced foreign currency inflows into the market.
According to a market update from Coronation Merchant Bank’s research arm, total FX inflows into the official window declined by approximately 21 percent week-on-week, settling at $593.70 million compared with $748.40 million recorded in the previous week.
Despite the drop in inflows, traders said the FX market remained relatively stable, noting the absence of visible CBN intervention. Market participants attributed the calm conditions to subdued corporate demand following large foreign exchange purchases executed by corporates and other market players in 2025.
“There is currently no sign of aggressive demand pressure,” an FX trader said, adding that most corporates had already met their major FX obligations toward the end of last year.
The CBN had previously stepped in aggressively to support the naira, deploying an estimated $7.53 trillion in 2025 to meet demand pressures triggered largely by foreign portfolio investors exiting Nigerian financial markets amid global tightening conditions.
In contrast to the official window, the parallel market recorded renewed pressure, with the naira depreciating by 1.45 percent to trade around ₦1,490 per dollar. The divergence between both markets continues to reflect lingering liquidity constraints and speculative positioning outside the regulated FX framework.
Analysts expect FX dynamics in the coming weeks to depend on inflows from portfolio investors, crude oil receipts, and the pace of fiscal and monetary reforms aimed at stabilising the currency market.
