The Nigerian naira remained largely stable in early trading on Tuesday, January 20, 2026, as the foreign exchange market responded to government projections of economic consolidation and a targeted growth rate of 4.68 per cent for the year.
Official market trends
At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at about ₦1,419.37 to the dollar. By mid-morning, it had strengthened slightly to ₦1,417.53, representing a marginal gain of 0.13 per cent and signalling calm conditions in the official window.
Market watchers attribute the stability to improved transparency and reporting in the Central Bank’s management of liquidity and external obligations. Government officials have also pointed to recent reforms that helped revalue the naira, easing pressure on the debt-to-GDP ratio and creating a more predictable environment for investors and local manufacturers.
Parallel market performance
In the parallel market, the dollar continued to trade above the official rate. In major centres such as Lagos, Abuja and Kano, exchange rates ranged between ₦1,465 and ₦1,480 per dollar.
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Despite the premium, traders say the gap between the two markets has narrowed significantly compared to the sharp spreads seen in previous years. Dealers in Lagos noted that demand is currently being met, with no signs of panic buying or heavy speculative activity in early trading.
Market outlook
Analysts describe the naira’s current movement as part of a broader consolidation phase in the economy. With inflation showing signs of easing and the exchange rate relatively steady, attention is now focused on the Central Bank’s next policy moves to sustain liquidity while supporting growth.
Investors are also monitoring global oil prices closely, as changes in crude demand could affect Nigeria’s foreign reserves and shape the medium- to long-term outlook for the naira.
