Nigerian Naira Gains Strength, Closes January at 1,386/$ in Official Market

In January 2026, the Nigerian Naira closed at 1,386 per US dollar in the official foreign exchange market, marking a 2.47% appreciation from the previous week. The Naira's consistent upward trend started on January 26, reaching its strongest point at 1,386.55 per dollar by the end of the month.

The market also witnessed a high rate of 1,423.50 earlier in the week, but this narrowed towards the month's end, indicating relative stability and strengthening. Analysts from Cowry Asset Management noted the Naira's positive performance against the dollar, with a 2.11% appreciation in the parallel market to N1,444.19.

AIICO Capital reported a 1.28% increase in the parallel market to N1,490.00. The month's trend was driven by modest Naira appreciation, improved foreign exchange liquidity, and minimal Central Bank of Nigeria interventions.

External reserves also rose to $46.18 billion, driven by improved foreign exchange inflows. Analysts expect the Naira to remain volatile but broadly stable with modest appreciation in February, supported by high crude oil prices and ongoing monetary and fiscal reforms.