Naira Slips to N1,421/$ at Official FX Market in Mid-January 2026
The naira exchange rate in January 2026 recorded a modest decline at the official foreign exchange market, closing at N1,421 per dollar on Wednesday, according to figures published by the Central Bank of Nigeria (CBN).
The slight depreciation comes as analysts maintain that stronger external reserves, ongoing FX reforms and structural adjustments are expected to help stabilise the currency as 2026 progresses.
Official data shows that the naira traded at N1,416/$ on Tuesday and N1,428/$ on Monday, making Wednesday’s closing rate the first noticeable midweek dip in the second week of the year.
What the data shows
CBN figures indicate that the naira’s movement remains within a tight trading range, suggesting reduced volatility compared with previous years.
Earlier in the month, the naira weakened to N1,431/$ on January 2, 2026, the first trading day of the year, driven by post-holiday foreign exchange demand and ongoing supply adjustments.
In the parallel market, the naira traded weaker at between N1,490 and N1,495 per dollar on Wednesday, compared with N1,470/$ the previous day. The widening gap between official and parallel rates continues to reflect unmet FX demand, particularly for travel, imports and other invisible transactions.
Despite the disparity, analysts note that overall currency volatility has moderated significantly, pointing to improving confidence in Nigeria’s evolving foreign exchange framework.
Reserves and supply-side support
Nigeria’s foreign exchange reserves edged up to $45.62 billion on Tuesday, from $45.60 billion on Monday, offering additional backing for the naira.
The CBN projects that reserves could rise to about $51.04 billion in 2026, up from an estimated $45.01 billion in 2025, supported by easing FX pressures, higher oil revenues, sovereign bond issuances and increased diaspora remittances.
The central bank also highlighted progress in domestic refining capacity as a key structural support. The Dangote Refinery has expanded its capacity to 700,000 barrels per day, up from 650,000 bpd in 2025, with a medium-term target of 1.4 million bpd. This is expected to reduce fuel import dependence and strengthen reserve accumulation.
Economists say these developments improve the medium- to long-term outlook for the naira, even as short-term fluctuations persist.
Speaking on the currency outlook, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), described prospects for 2026 as largely positive, citing Nigeria’s strong reserves as a key anchor for stability.
What you should know
In its 2026 macroeconomic outlook, CardinalStone projected that the naira could trade between N1,350 and N1,450 per dollar during the year.
Nairametrics also reported that the naira weakened slightly to N1,431/$ at the official market on the first trading day of 2026.
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