Early on Thursday, January 29, 2026, the Nigerian Naira continued to gain ground versus the US dollar. The local currency continues to gain from more liquidity and the central bank’s improved price discovery processes after a week of notable advances in the official window.
Official Trends in the Market
The Naira began trading on the Nigerian Foreign Exchange Market (NFEM) at about 1,395.09 per dollar. The rate fluctuated somewhat as of the mid-morning session, ending at 1,396.98 per dollar.
The bullish trend seen over the past 48 hours, during which the official rate successfully fell below the 1,400 level, is continued by this performance. The Central Bank of Nigeria’s (CBN) recent policy achievements, such as the strong operation of the Electronic Foreign Exchange Matching System (EFEMS) and a significant increase in external reserves, are primarily responsible for the appreciation. According to market analysts, investor confidence has increased dramatically as a result of the resolution of historical FX backlogs, creating a more stable and predictable trading environment.
Market Performance in Parallel
The improvements in the official market have prompted a more circumspect reaction from the parallel market, which is frequently utilized for retail and quick cash transactions. The dollar is now trading between 1,468 and 1,480 in important commercial centers including Lagos, Abuja, and Kano.
The premium has drastically decreased in comparison to early January statistics, even though the difference between the official and parallel rates still exists. There is a noticeable lack of speculative pressure, according to Bureau De Change operators, even though there is still retail demand for small-scale imports and personal trips. As the first month of the year comes to an end, the relative stability of the informal rate today indicates that the market is starting to find a solid floor.
An overview of trading rates
Official NFEM Opening: 1,395.09 Official NFEM Current: 1,396.98
Range of the Parallel Market: 1,468–1,480
For the rest of the week, the Naira’s general outlook is still favorable. Financial analysts predict that the Naira may consolidate its gains in the 1,390–1,400 range if crude oil output levels stay stable and the CBN continues its present intervention policy. The week’s closing numbers are closely watched by investors since they will determine how the currency performs in February.
