As markets open today, Monday, January 19, the Naira trades steadily against the dollar and faces a wider gap against the pound. Today, the Nigerian Naira began the new trading week steadily against major foreign currencies, indicating a period of relative calm in the foreign exchange market following recent consolidation and policy changes.
Early trading saw the Naira remain stable versus the US dollar at the Nigerian Foreign Exchange Market (NFEM). The local currency showed a slight increase from its closing levels of ₦1,422 late last week, opening at an average rate of ₦1,420.59 per dollar.
An estimated 0.14% increase in value occurred during the first few hours of trading, according to early session data, when the Naira briefly reached a high of ₦1,422.59 before falling. Analysts credit this stability to recent monetary policy actions and ongoing liquidity support, as well as projections that Nigeria’s external reserves may surpass $50 billion later this year, an outlook that has bolstered investor confidence.
The dollar fluctuated in a comparatively narrow range on the black market, also known as the parallel market. Selling rates ranged from ₦1,472 to ₦1,475 per dollar, while buying rates were between ₦1,465 and ₦1,470, according to Bureau De Change operators in Lagos and Abuja. Despite the continued premium over the official rate, market players observe that volatility has decreased considerably in comparison to the pronounced fluctuations that occurred in 2024 and 2025. Improved diaspora remittance inflows and continuous exchange rate reforms are commonly cited as reasons for the closing gap.
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On the other hand, the trading environment for the Naira remains more difficult when compared to the British Pound Sterling. The Pound began the day at roughly ₦1,901.50 at the official NFEM window and saw moderate volatility, peaking at roughly ₦1,907.15 before levelling off at roughly ₦1,903.36, BrandSpur banking and finance news desk reports.
The parallel market revealed a different picture, whereas the official market’s movements stayed largely contained. The value of the pound fluctuated at much higher rates, ranging from ₦2,150 to ₦2,210, in major trading hubs like Lagos, Abuja, and Kano. This shows that the official and unofficial segments are separated by more than ₦250, highlighting persistent demand pressures for foreign exchange that continue to exceed supply through regulated channels.
In general, currency observers believe that the Naira’s stability in relation to the Dollar indicates growing trust in recent reforms, even though differences, especially in relation to the Pound, highlight persistent structural issues in the foreign exchange market. Reserve levels, liquidity conditions, and policy consistency will be the main factors influencing whether the current stability can be maintained in the upcoming weeks.
