As the FX market remains volatile, the Naira and Pound exhibit mixed fortunes.
On Wednesday, January 16, 2026, Nigeria’s foreign exchange market experienced mixed movements, as the naira performed differently across market segments and currency pairs, indicating ongoing volatility and structural pressures within the FX system.
During morning trading, the British Pound Sterling (GBP) averaged ₦1,906.47 per pound at the official Nigerian Foreign Exchange Market (NFEM). The naira saw an intraday low of ₦1,902.63 and a high of ₦1,907.59 after opening somewhat stronger against the pound. Although the rate is still historically high, market observers say the narrow range points to short-term stability in the official window, primarily supported by regulated liquidity and demand from corporate importers, BrandSpur banking and finance news desk reports.
On the other hand, the pound was still priced at a substantial premium on the parallel market. Depending on the size of the transaction and the availability of currency, checks at the main Bureau De Change (BDC) hubs in Lagos and Abuja revealed that the pound regularly traded above ₦1,950. The ongoing discrepancy between official and unofficial rates, according to analysts, feeds speculation and drives up the cost of imports for households and businesses.
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The conflicting picture was further highlighted by changes in the US dollar-naira exchange rate. The naira fell from ₦1,480 per dollar on Tuesday to ₦1,490 in the parallel market. At the official window, however, the local currency gained a little strength, rising from ₦1,420.25 to ₦1,419.5 per dollar. The 75-kobo appreciation at the NFEM was demonstrated by data made public by the Central Bank of Nigeria, despite the continued widening gaps between market segments.
Consequently, the difference between the official and parallel market rates increased from ₦59.75 on Tuesday to ₦70.5 per dollar.
Because it distorts price signals, promotes arbitrage, and makes it more difficult to stabilise the naira in the face of high demand for foreign exchange, economists caution that the widening gap between official and parallel rates, both for the dollar and the pound, remains a major obstacle for monetary authorities.
