Naira Holds Steady Across Markets on Jan 5

The naira sustained its strength against the U.S. dollar on Monday, January 5, across both the parallel market and the Nigerian Foreign Exchange Market (NAFEM), maintaining a positive start to trading in 2026.

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,490/$1 for buying and ₦1,500/$1 for selling in the parallel market, unchanged from Friday’s closing rates.

At the official window, the local currency maintained its recent appreciation, closing at ₦1,429/$1. This represents a 7.4 per cent gain from the ₦1,535/$1 recorded at the end of 2024 and an improvement from the ₦1,435/$1 level seen earlier in 2025.

Analysts, however, project further strengthening of the naira in 2026. They expect the currency to trade within a narrower and firmer range, supported by improving foreign exchange fundamentals, higher FX inflows, reduced speculative pressures, and enhanced price discovery in the forex market.

They added that clearer pricing mechanisms and improved transparency have helped restore confidence among foreign investors and exporters, boosting foreign exchange liquidity and supporting naira stability.