Dollar to Naira exchange rate today, January 1, 2026
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The Nigerian Naira began the new year with relative stability in the foreign exchange market, maintaining a steady range against the United States Dollar.
As of January 1, 2026, the local currency continues to navigate a path of moderate volatility as the Central Bank of Nigeria (CBN) maintains its focus on liquidity and market transparency through the Nigerian Foreign Exchange Market (NFEM).
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market (NFEM), the Naira opened the year trading at an average rate of 1,445.99 per US Dollar. This follows a period of mild appreciation observed toward the end of December 2025, where the rate hovered between 1,445 and 1,470. Market data indicates that the closing rate on the final trading day of 2025 settled near 1,445.24, marking a slight improvement from the mid-December highs.
Total daily turnover in the official window remains a key metric for investors, with the CBN continuing its efforts to ensure that valid demand for “invisible” transactions—such as school fees and medical bills—is met through formal banking channels.
Parallel Market Trends
In the informal or parallel market, the exchange rate showed a slight premium as is typical during the holiday season. The Dollar is currently being exchanged at rates ranging between 1,480 and 1,510 per USD, depending on the location and volume of the transaction.
While the gap between the official and parallel market rates has narrowed significantly compared to previous years, a spread of approximately 3% to 5% persists. Traders attribute this to the high demand for cash by travelers and small-scale importers who operate outside the formal NFEM framework.
Macroeconomic Outlook
The 2026 outlook for the Naira remains tied to global oil prices and the success of the CBN’s ongoing monetary policy reforms. According to recent macroeconomic reports from the Central Bank, FX pressures are expected to ease further throughout 2026, underpinned by strong policy reforms aimed at lifting private investment and stabilizing the local currency.
Experts suggest that if the current trend of increased FX inflows continues, the Naira may see further consolidation, potentially narrowing the arbitrage window further and providing a more predictable environment for Nigerian businesses.
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