Naira Ends January Stronger at ₦1,386/$ in Official Market as FX Stability Improves
The naira closed the month of January 2026 on a positive note, strengthening against the United States dollar in Nigeria’s official foreign exchange market and signalling renewed stability in the country’s FX landscape. Data from the Central Bank of Nigeria (CBN) showed the local currency settled at ₦1,386.55 per dollar on the final trading day of the month.
This marked a 2.47 per cent appreciation from the previous week’s high of ₦1,422.07/$ recorded on January 23. The naira began its upward movement on January 26, climbing steadily from ₦1,418.95/$ and reaching its strongest level by the end of the week, despite briefly touching a high of ₦1,423.50/$ earlier in the period.
Market data also indicated narrowing fluctuations between daily highs and lows toward the end of January, pointing to a period of relative calm in the official FX window. The official rate remains critical for the economy as it determines pricing for imports and eligible foreign payments such as school fees and medical expenses processed through Nigerian banks.
Analysts believe the naira’s improved performance could help ease inflationary pressure on imported goods. Cowry Assets Management Limited noted that the positive momentum extended to the parallel market, where the naira appreciated by 2.11 per cent to ₦1,444.19 per dollar. The firm attributed the trend to steady oil receipts, stronger non-oil inflows and expectations of stable global oil prices following unchanged U.S. Federal Reserve interest rates.
Other analysts echoed this outlook, citing improved FX liquidity, higher external reserves and limited intervention by the CBN as key drivers. Nigeria’s external reserves rose by $687.40 million month-on-month to $46.18 billion in January. While experts expect the naira to remain volatile in February, they project modest appreciation, supported by strong reserves, high crude oil prices and ongoing monetary and fiscal reforms, even as dollar demand persists amid uncertainty surrounding new U.S. tax laws.
source: punch