Naira Slips Mid‑Week as 2026 Prospects Brighten

The naira recorded a mild depreciation at the official foreign exchange market in the second week of January 2026, closing at ₦1,421 per dollar on Wednesday.

The movement followed earlier trades at ₦1,416/$ on Tuesday and ₦1,428/$ on Monday, marking a modest mid-week fluctuation within a relatively narrow range.

Market analysts note that the limited volatility reflects improving confidence in Nigeria’s evolving foreign exchange framework, supported by stronger reserves, ongoing reforms, and structural improvements expected to bolster stability in 2026.

At the parallel market, the naira traded weaker, averaging between ₦1,490 and ₦1,495 per dollar, highlighting persistent unmet demand for foreign exchange related to travel, imports, and other invisible transactions.

Nigeria’s external reserves edged higher to about $45.62 billion, providing additional support for the currency. The central bank projects reserves could rise further in 2026, driven by improved oil earnings, increased foreign inflows, sovereign bond issuances, and growing diaspora remittances.

Developments in domestic refining are also expected to support the currency, as expanded refining capacity reduces demand for fuel imports and eases pressure on foreign exchange.

Economists say these factors strengthen the medium- to long-term outlook for the naira, even as short-term fluctuations continue.