Nigeria’s naira began the 2026 trading year with a modest but symbolically important gain at the official foreign exchange market, closing at ₦1,430.84 to the dollar on Friday, its strongest level since the end of December.
Official market data show the currency appreciated from ₦1,435.75 recorded on December 31, 2025, representing a ₦4.31 gain, or 0.34 per cent, on the first trading day of the new year. The move reflects a tentative stabilisation following a volatile final week of 2025, during which the naira swung sharply amid thin liquidity and uneven dollar supply.
Earlier in the week, the currency had weakened to ₦1,445.68 on Tuesday after opening at ₦1,442.51 on Monday, before regaining ground mid-week and extending gains into Friday’s session.
Parallel Market Divergence Persists
The improvement at the official window was not mirrored in the parallel market, where the naira weakened slightly. On Friday, the currency traded at ₦1,495 per dollar, compared with ₦1,490 at the close of 2025. Rates at the informal market had briefly firmed to ₦1,485 earlier in the week before slipping back as dollar demand resurfaced.
The persistent gap between the two markets underscores continuing structural pressures in Nigeria’s foreign exchange system, despite policy reforms aimed at unifying rates and improving price discovery.
Fragile Stability, Not Yet a Trend
Currency analysts caution that the early-year gain should be interpreted carefully. While improved inflows and tighter administrative controls have helped dampen volatility at the official window, sustained appreciation will depend on deeper liquidity, stronger export earnings, and consistent confidence in policy execution by the Central Bank of Nigeria.
For now, the naira’s opening move in 2026 signals fragile stability rather than a decisive reversal, with market participants watching closely to see whether the momentum can be maintained as trading volumes normalise in the weeks ahead.
