Naira maintains stability, edges higher against Dollar

By Grace Alegba

The Nigerian naira kicked off the first full trading week of 2026 on a positive note, gaining ground against the U.S. dollar in the official foreign exchange market.

According to data from the Central Bank of Nigeria (CBN), the naira traded at a volume-weighted average rate of ₦1,429.30 per dollar on Monday, reflecting a gain of approximately ₦1.54 (0.1%) compared to the previous trading day’s close of ₦1,430.84 on January 2.

This modest appreciation extends the naira’s relative stability observed toward the end of 2025, when it recorded its first annual gain in over a decade, strengthening by about 7% year-on-year amid ongoing CBN reforms aimed at unifying exchange rates and boosting forex liquidity.

Market analysts attribute the early-week gain to sustained inflows from non-oil exports, remittances, and cautious optimism following improved external reserves, which supported interventions throughout late 2025.

However, post-holiday demand for dollars from importers and manufacturers restocking inventories could temper further advances in the near term.

In the parallel market, rates remained higher, with bureau de change operators quoting buy/sell spreads around ₦1,480–₦1,490 per dollar, indicating a persisting but narrowed premium over the official window.

Economists remain cautiously optimistic for 2026, projecting the naira to trade in a broader band of ₦1,400–₦1,500, bolstered by expected higher oil production, reduced fuel import reliance, and continued policy measures to enhance transparency and curb speculation.