The Nigerian naira remained largely stable in early trading on Tuesday, January 20, 2026, as the foreign exchange market responded to recent government economic projections, including a targeted growth rate of 4.68 percent for the year.
At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at about ₦1,419.37 to the dollar. By mid-morning, the local currency had recorded a slight appreciation, trading at approximately ₦1,417.53 per dollar. This represents a modest gain of 0.13 percent from the opening rate, signaling relative calm and stability at the official window.
Market stability at the NFEM has been reinforced by enhanced transparency and reporting in the Central Bank of Nigeria’s handling of external debt and liquidity management. Finance authorities have indicated that although nominal debt levels remain elevated, recent naira revaluation reforms have helped stabilise the debt-to-GDP ratio, creating a more predictable climate for investors and manufacturers.
Parallel Market Trends
In the parallel market, which caters largely to retail and small-scale transactions, the dollar continues to trade above the official rate. In major commercial centres including Lagos, Abuja, and Kano, exchange rates currently range between ₦1,465 and ₦1,480 per dollar.
Despite the continued gap between the official and informal markets, the disparity is considerably narrower than levels recorded in previous years.
Currency dealers in Lagos report that supply is presently sufficient to meet demand, with no significant signs of speculative pressure in early trading.
Market Outlook.
Analysts describe the naira’s current performance as part of a broader consolidation phase within the Nigerian economy. With inflation showing signs of easing and exchange rate stability improving, market participants are closely watching the Central Bank for sustained intervention measures that balance liquidity control with economic growth objectives.
Investors are also monitoring global oil price trends, as fluctuations in petroleum demand could affect Nigeria’s foreign reserves and influence the medium- to long-term outlook for the naira.