Naira Gains Strength Against Dollar as January Closes on Positive Note

The naira ended January 2026 on a stronger footing after recording notable gains against the United States dollar in the official Nigerian foreign exchange market. Data from the Central Bank of Nigeria showed that the official exchange rate appreciated by 2.47 per cent in the final week of the month.

The Nigerian foreign exchange market rate strengthened from a weekly high of 1,422.07 per dollar on Friday January 23 to close at 1,386.55 per dollar on the last trading day of the month. This rate is the benchmark used for corporate international payments and eligible transactions such as school fees medical expenses and other regulated foreign exchange demands.

The naira recorded a steady upward movement from January 26 when it traded at 1,418.95 per dollar before reaching its strongest level of 1,386.55 per dollar by Friday. Although the market experienced a peak rate of 1,423.50 per dollar earlier in the week the narrowing gap between daily highs and lows suggested improved stability toward the end of the month.

Analysts note that the strengthening of the official exchange rate is significant as it influences the cost of imported goods and services processed through the banking system. Sustained gains could help ease inflationary pressure on imported commodities.

In its weekly report Cowry Assets Management Limited confirmed that the naira also appreciated in the parallel market rising by 2.11 per cent to 1,444.19 per dollar. The firm projected moderate gains in the near term supported by steady oil receipts stronger non oil inflows and a favourable trade balance.

AIICO Capital also reported a 1.28 per cent appreciation in the parallel market in January with the naira closing at 1,460 per dollar. According to the firm the trend was driven by improved foreign exchange liquidity increased foreign portfolio inflows and minimal intervention by the central bank.

The analysts further disclosed that Nigeria external reserves increased by 687.40 million dollars month on month to 46.18 billion dollars reflecting improved inflows from oil receipts remittances and stabilisation measures.

Looking ahead experts project that the naira will remain volatile but broadly stable in February with the potential for modest appreciation if current conditions persist.