The naira began trading in 2026 on a stronger footing at the official foreign exchange (FX) market, appreciating to N1,430.84 per dollar on Friday, the first trading day of the new year.
Data from the Nigerian Foreign Exchange Market (NFEM), the country’s official FX window, showed that the local currency gained N4.31 or 0.34 per cent compared to the N1,435.75 per dollar recorded on December 31, 2025, the last trading day of the previous year.
A review of trading activities during the week indicated mixed performance for the naira before closing stronger at the official market.
The currency had earlier appreciated to N1,442.51 per dollar on Monday but weakened to N1,445.68 on Tuesday. It, however, regained momentum on Wednesday, strengthening to N1,435.75 against the dollar, a level it maintained into the end of the year before further appreciation on Friday.
In contrast, the naira weakened at the parallel, or black market, segment on Friday, depreciating to N1,495 per dollar. This represented a 0.34 per cent decline from the N1,490 per dollar exchanged on December 31.
At the start of the week, the naira had shown relative strength in the parallel market, appreciating to N1,485 per dollar on Monday. It later lost ground on Tuesday, falling to N1,490, and remained unchanged on Wednesday before slipping further on Friday.
Commenting on the outlook for the currency, President Bola Tinubu, in his New Year’s message to Nigerians, said the country’s growing foreign reserves have helped to cushion the naira against external shocks and are expected to improve further in 2026.
“Supported by sound monetary policy management, our foreign reserves stood at $45.4 billion as of December 29, 2025, providing a substantial buffer against external shocks for the Naira,” the President said.
Market analysts say the naira’s early gains at the official market could reflect sustained monetary tightening, improved FX liquidity, and increased confidence in economic management, even as pressures persist in the parallel market.
