The British Pound Sterling ended January 2026 on a steady note against the Nigerian Naira, reinforcing signs of calm returning to Nigeria’s foreign exchange market after months of volatility.
Trading on Friday, January 30, 2026, showed a noticeably narrower gap between the official and parallel markets, a development analysts say reflects the growing impact of the Central Bank of Nigeria’s liquidity and price-discovery reforms.
Official Market Shows Naira Resilience
At the Nigerian Foreign Exchange Market (NFEM), the Pound opened trading at about ₦1,916.25. Modest intraday movements followed, with the rate touching a high of ₦1,917.35 and dipping to ₦1,909.70 before settling at ₦1,912.64 by mid-morning.
Market watchers describe the performance as a mild but important gain for the Naira, underpinned by the continued rollout of the Electronic Foreign Exchange Matching System (EFEMS). The platform has helped tighten spreads and improve transparency in pricing major global currencies.
Analysts also point to strong external reserves and steady crude oil output as key supports, noting that the Pound’s current level marks a sharp contrast to the ₦2,000-plus volatility seen in the second half of 2025.
Parallel Market Remains Calm
At the parallel market, the Pound traded between ₦2,010 and ₦2,025, maintaining its usual premium over the official window but without the sharp swings that often characterise month-end trading.
Bureau de Change operators in Lagos, Abuja and Kano say demand for the Pound is still largely driven by school fees payments and personal travel allowances. However, improved supply conditions have prevented the sudden price spikes that were common in previous years.
Traders say the calmer tone suggests the official market is now absorbing a larger share of corporate demand that previously spilled into the informal segment.
Rates Snapshot — January 30, 2026
- NFEM (Official) Opening: ₦1,916.25
- NFEM (Official) Closing: ₦1,912.64
- Parallel Market Range: ₦2,010 – ₦2,025
With the market heading into the weekend, the outlook for the Naira remains cautiously optimistic. Economists believe sustained stability around the ₦1,900 level in the official market could set a solid tone for February, especially as inflationary pressures are expected to ease further in 2026.
