Adeyemi David
Nigeria’s naira closed the trading week ended January 31, 2026, with notable gains against the United States dollar, marking its strongest performance in around two years amid improved foreign exchange market conditions and rising external reserves.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira appreciated to ₦1,386.55 per dollar at the official market by Friday, a 2.53 per cent gain from the ₦1,421.63 rate recorded the previous week.
The currency opened the week at ₦1,418.95/$ before strengthening steadily across sessions.
The parallel (black) market also reflected positive momentum, with the naira closing at around ₦1,452 per dollar, up from earlier levels in the week, signaling broad‑based improvement across FX windows.
Market analysts attributed the uptrend to continued foreign exchange reforms led by the Central Bank of Nigeria (CBN), enhanced liquidity in the FX market, and a steady rise in external reserves which stood at over $46 billion by late January.
These structural shifts have bolstered investor confidence and helped temper volatility that characterised much of the prior year’s trading.
Commentators also pointed to ongoing policy efforts to strengthen price discovery and market transparency through platforms like the Electronic Foreign Exchange Matching System (EFEMS), which have been central to currency stabilization efforts in recent months.
Despite the positive weekly performance, some market watchers note that sustaining the naira’s gains will depend on continued FX inflows, supportive macroeconomic policies and effective management of demand pressures across both official and parallel markets.
Overall, the week ending January 31 saw the naira rebound from earlier weakness, offering a renewed sense of optimism for traders, businesses and investors ahead of February trading.
