The naira started the first full trading week of 2026 with fluctuating movements in major foreign exchange markets, reflecting persistent pressure from high demand for the dollar.
In early trading on Monday, there was a slight improvement from the end of the previous year, although volatility persists as businesses and investors return after the holiday season.
At the Foreign Exchange Market, managed by the Central Bank of Nigeria, the naira was trading at an average of ₦1,441.85 to the US dollar.
The currency saw significant fluctuations in the early hours, briefly strengthening to ₦1,437.10 before stabilizing near its current rate.
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Analysts indicate that the availability of liquidity at the official market continues to influence pricing, as authorities aim for exchange rate alignment.
In the parallel market, the naira is still trading at a weaker rate compared to the official exchange, although the difference has slightly decreased.
Bureau De Change operators in Lagos, Abuja, and Kano reported dollar rates ranging from ₦1,455 to ₦1,465, depending on the size of the transaction and location.
Market observers attribute the slower divergence to stricter monetary controls and a decrease in speculative trading.
Increased business activity following the holidays is generating fresh demand for foreign exchange in key sectors.
Manufacturers and importers looking to restock for early 2026 are putting additional pressure on the dollar.
Investors are also keeping an eye on Nigeria’s foreign reserves and potential interventions from the central bank to alleviate market pressures.
