Nigeria’s currency maintained its robust performance against the US Dollar on Thursday, January 29, 2026, extending a week-long rally that has seen the Naira strengthen significantly in official trading channels.
Official Market Shows Resilience
The Naira opened Thursday’s session at 1,395.09 per dollar in the Nigerian Foreign Exchange Market (NFEM), with mid-morning trading seeing the rate edge slightly to 1,396.98. This marks the currency’s sustained hold below the psychologically important 1,400 mark—a threshold it breached earlier this week.
The Central Bank of Nigeria’s policy interventions continue to yield positive results, with the Electronic Foreign Exchange Matching System (EFEMS) functioning effectively and Nigeria’s external reserves showing healthy growth. Market watchers point to the clearing of long-standing foreign exchange backlogs as a key factor restoring trader confidence and creating more predictable market conditions.
Informal Market Narrows Gap
In the parallel market—where individuals and small businesses conduct cash transactions—the dollar is currently changing hands between 1,468 and 1,480 Naira across Lagos, Abuja, and Kano. This represents a significant narrowing of the spread between official and street rates compared to early January levels.
Currency dealers report steady demand for personal travel and small-scale import needs, but note an absence of the speculative buying that typically widens market gaps. The calmer parallel market conditions indicate traders are adjusting to a more stable exchange rate environment as January concludes.
Current Exchange Rates at a Glance
- Official Market Opening: ₦1,395.09/$
- Official Market Current: ₦1,396.98/$
- Street Market Range: ₦1,468 – ₦1,480/$
Currency analysts project continued stability if oil production remains consistent and the central bank maintains its current market approach. Many expect the Naira to trade within the 1,390–1,400 band, with this week’s closing rates likely setting the foundation for February’s performance.
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