The Nigerian naira opened the first full trading Friday of the year on a calm note, holding steady across both the official and informal foreign exchange markets. Analysts say early movements in 2026 will be closely watched as the Central Bank of Nigeria continues its push for better price discovery and a narrower gap between market segments.
Official market performance
At the Nigerian Foreign Exchange Market (NFEM), the naira traded steadily against the US dollar. As of the morning of January 2, 2026, the official rate stood at ₦1,446.62 to the dollar.
This comes after a period of gradual improvement for the local currency. Over the past year, the naira has strengthened by about 6.4 per cent on the official window, recovering from the record lows of ₦1,717.50 seen in late 2024. With the holiday period ending, traders expect liquidity conditions to shift as corporate demand for foreign exchange begins to return.
Parallel market trends
In the parallel market, activity reflected the usual premium that comes with renewed economic activity. While the official rate remained around the ₦1,446 level, rates in the informal market were shaped largely by immediate retail demand.
Market watchers note that the gap between the NFEM and the parallel market has narrowed considerably compared to previous years. They attribute this to improved transparency in the official market and more consistent interventions by monetary authorities.
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Dollar to Naira exchange rate today, January 1, 2026
Outlook for the naira
Several factors are expected to influence the currency in the early weeks of 2026. Stable foreign reserves are giving the Central Bank some room to manage volatility, while steady oil production and global crude prices continue to support foreign exchange inflows. Attention is also turning to the first Monetary Policy Committee meeting of the year, which investors see as key to understanding the direction of interest rates and inflation control.
For now, volatility is expected to remain low. However, analysts believe the return of full business activity next week could offer clearer signals on the naira’s direction in the first quarter of the year.
