Naira closes January at 1,386/$ in official market

The naira showed resilience in the final week of January 2026, gaining significant ground against the United States dollar in the official Nigerian foreign exchange market.

According to data from the Central Bank of Nigeria, the Nigerian foreign exchange market rate, which is the official rate used for corporate international payments and eligible transactions such as medical needs and school fees, strengthened from a weekly high of 1,422.07/$ on the previous Friday, 23 January, to close the month at 1,386.55/$ last Friday. This indicates a 2.47 per cent appreciation.

The naira recorded a consistent upward trend starting from 26 January, moving from 1,418.95 per dollar to its strongest point of 1,386.55 per dollar by Friday. Although the market saw a highest rate of 1,423.50/$ early in the week, the gap between the highest and lowest daily rates narrowed towards the end of the month, indicating a period of relative stability.

The strengthening of the official Nigerian foreign exchange market rate is a critical indicator for the economy, as it often dictates the pricing for imported goods and services processed through the banking system.

Analysts suggest that if this trend continues, it could help to dampen inflationary pressures on imported commodities.

Analysts at Cowry Assets Management Limited, in their weekly report, acknowledged the strengthening of the naira against the dollar over the past week and noted that in the parallel market, the local currency also performed positively, appreciating 2.11 per cent to N1,444.19/$.

Sharing their outlook for the week, the analysts said, “The naira is expected to maintain moderate gains, supported by steady oil receipts, stronger non-oil inflows, and a trade surplus. Oil prices are likely to remain stable to mildly bullish, reflecting steady global demand and the unchanged interest rates from the United States Federal Reserve.”