The naira recorded a gentle depreciation on the official overseas change market within the second week of January 2026, closing at N1,421 per greenback on Wednesday.
That is in keeping with knowledge printed on the Central Bank of Nigeria (CBN) web site on Wednesday.
The motion comes as analysts proceed to level to stronger reserve buffers, FX reforms, and structural enhancements anticipated to help change fee stability heading into 2026.
The foreign money had traded at N1,416/$ on Tuesday and N1,428/$ on Monday, making Wednesday’s shut the primary notable mid-week slip within the second week of the yr.
Official market knowledge exhibits that the naira’s mid-week motion stays inside a slim band, suggesting moderated volatility in comparison with earlier years.
Earlier, Nairametrics reported that the naira weakened to N1,431/$ on January 2, 2026, the primary buying and selling day of the yr, reflecting post-holiday FX demand and lingering provide changes.
On the parallel market, the naira traded weaker, averaging between N1,490 and N1,495 per greenback on Wednesday, in contrast with N1,470/$ the day prior to this.
The widening unfold between the official and casual markets continues to mirror unmet demand for FX, notably for journey allowances, imports, and different invisible transactions.
Regardless of this hole, market watchers word that the dimensions of volatility has moderated considerably, pointing to enhancing confidence in Nigeria’s evolving overseas change framework.
Nigeria’s overseas change reserves rose barely to $45.62 billion on Tuesday, up from $45.60 billion on Monday, providing further help to the naira.
In response to the CBN, reserves are projected to rise to about $51.04 billion in 2026, from an estimated $45.01 billion in 2025, supported by easing FX pressures, larger oil earnings, sovereign bond issuances, and elevated diaspora remittance inflows.
The apex {bank} additionally highlighted developments within the home refining sector as a key structural help.
The Dangote Refinery’s enlargement of its nameplate capability to 700,000 barrels per day from 650,000 barrels per day in 2025, with a medium-term goal of 1.4 million barrels per day, is predicted to considerably cut back Nigeria’s dependence on refined gas imports.
This could, in flip, help reserve accumulation and reinforce stability within the FX market.
Economists say these elements collectively strengthen the medium- to long-term outlook for the naira, whilst short-term fluctuations persist.
Chatting with Nairametrics, Dr. Muda Yusuf, Chief Govt Officer of the Centre for the Promotion of Non-public Enterprise (CPPE), described the 2026 change fee outlook as largely optimistic, citing Nigeria’s sturdy exterior reserves as a crucial anchor.
“The prospects for the steadiness of the naira are fairly shiny. That is largely as a result of our overseas reserves are very sturdy, and reserves play a crucial position in figuring out the power and stability of any foreign money,” Yusuf mentioned.
In its 2026 macroeconomic outlook, CardinalStone projected that naira might strengthen to between N1,350 and N1,450 per greenback in 2026.
Nairametrics studies that the naira weakened barely to N1,431 per greenback on the official overseas change market on the primary buying and selling day of 2026.
