At the official foreign exchange window, the naira closed the first month of 2026 on a higher note, reaching N1,391 to the dollar at the end of January.
Reflecting a period of relative quiet and enhanced FX market liquidity, this shows a significant gain from the N1,431 level recorded at the beginning of the month.
Data from the Central Bank of Nigeria show that throughout January, the currency traded mostly below N1,425, continuing the modest rebound that began near the end of 2025.
The performance also shows year-on-year growth against January 2025, when the naira was much weaker at N1,475 per dollar.
With the naira gaining to N1,453 from N1,474 at the beginning of the month, the News Chronicle understands that changes in the parallel market confirmed this trend.
The narrowing gap between official and street rates suggests reduced speculative activity and greater confidence among market participants.
The currency benefited greatly from external reserve growth. Rising from $45.56 billion in January, Nigeria’s reserves crossed the $46 billion threshold for the first time in almost eight years to reach $46.11 billion. This rise has helped CBN stabilise the market and satisfy FX demand.
Analysts claim that ongoing reforms, tighter monetary policy, and rising FX inflows could underpin greater stability in 2026, with some forecasts placing the naira between N1,350 and N1,450 per dollar if current conditions persist.
