Naira Shows Signs of Stability Amid Market Fluctuations

By Otobong Gabriel,  Abuja 

The Nigerian Naira has shown modest stability against the US dollar, with the official exchange rate closing at approximately ₦1,413.41 per dollar on Monday, January 26, 2026. 

This marks a slight but notable strengthening compared to previous weeks, offering a glimmer of relief for businesses and consumers struggling with high import costs and inflationary pressures.

Analysts say the improvement reflects a combination of enhanced liquidity in the foreign exchange market, steady inflows from crude oil exports, and government efforts to reduce the disparity between official and parallel market rates. 

“The Central Bank’s recent interventions have helped to narrow the gap and restore confidence, albeit gradually,” said a senior forex analyst in Lagos.

Meanwhile, in the parallel market, the dollar remains higher, trading between ₦1,475 and ₦1,490 per USD in key commercial hubs such as Lagos, Abuja, and Kano. 

While still above the official rate, this represents a narrower differential than in previous months, signaling cautious optimism among traders and importers.

Market watchers note that the narrowing gap between official and black-market rates is a positive indicator for economic stability, as it reduces incentives for illicit forex trading and may help moderate inflationary pressures on imported goods. 

However, they caution that sustained stability will depend on continued foreign inflows, oil revenue consistency, and robust economic policies that support investment and confidence in the Naira.

Some business owners report a slight easing in operational costs due to the improved official rate, but many continue to monitor parallel market fluctuations closely. “While the official rate is encouraging, we still rely on the black-market rate for urgent imports. 

Any sharp movements there could impact pricing for goods and services,” said a Lagos-based trader.

As Nigeria navigates these financial dynamics, economists emphasize that the current stability should not be mistaken for long-term recovery.

Continued government interventions and policy reforms will be critical to ensure that the Naira maintains a sustainable value and supports broader economic growth.