The naira weakened slightly to N1,431 per dollar at the official foreign exchange market on the first trading day of 2026, reflecting a mild pullback after ending 2025 on a strong note.
This is according to data tracked by Nairametrics from the Nigerian Foreign Exchange Market (NFEM) for trading on Friday, January 2, 2026.
The depreciation comes as the FX market reopened after the New Year holiday, with early signs of cautious sentiment resurfacing among market participants.
What the data is saying
Data shows the currency slipped from N1,429/$1 recorded on Wednesday, December 31, 2025, the final trading session of last year.
Although marginal, the movement marks a pause in the naira’s recent appreciation trend that dominated the closing days of 2025.
The data shows the naira depreciated by N2 on a day-on-day basis, closing at N1,431/$1 on January 2, 2026, compared to N1,429/$1 at the end of 2025.
This represents a modest weakening of about 0.14%.
A review of recent trading sessions indicates that the naira has shown notable resilience toward year-end.
It traded at N1,445/$1 on Tuesday, December 30, and N1,446.4/$1 on Monday, December 29, before firming further in the final days of the year.
On December 24, 2025, the currency exchanged at N1,451/$1, highlighting a gradual but consistent appreciation heading into the year’s close.
More context on the numbers
Despite the slight dip at the start of 2026, the naira closed 2025 with a strong annual performance.
The year-end strength was largely supported by sustained foreign exchange reforms, improved price discovery at the official market, and intermittent FX inflows from exporters and foreign portfolio investors.
In addition, tighter alignment between official and parallel market rates helped reduce speculative pressures toward the end of the year.
In a broader perspective, the naira’s current level still represents an improvement from the start of 2025.
Data shows that on the first trading day of 2025, January 2, the naira traded at N1,538.50/$1 at the official market, demonstrating how far the currency has strengthened over the past year.
What this means
Market analysts note that the modest depreciation at the start of 2026 is not unusual, as pent-up demand often re-emerges after extended public holidays.
“The naira’s relative stability in recent weeks suggests that volatility could remain limited in the near term,” Dotun Adedira, an Abuja-based market analyst, said.
The naira’s performance will likely be influenced by Central Bank of Nigeria (CBN) policy direction, global oil price trends, and the pace of foreign exchange inflows.
If FX supply improves and policy consistency is maintained, analysts believe the currency could sustain its recent stability in the early months of 2026.
