Dollar to Naira Exchange Rate Today — January 5, 2026

The Nigerian Naira started the first full business week of 2026 with mixed movements across the foreign exchange market. As of Monday morning, January 5, 2026, the local currency showed signs of mild recovery compared to how it ended 2025, although pressure from strong Dollar demand is still evident.

Official Market Rate (NFEM)

At the Nigerian Foreign Exchange Market (NFEM), which serves as the official trading window monitored by the Central Bank of Nigeria (CBN), the Naira is exchanging at an average rate of ₦1,441.85 per US Dollar.

Earlier in the day, trading was fairly unstable, with the Dollar briefly selling as low as ₦1,437.10 before settling near the current level. Analysts say this early volatility reflects thin liquidity and cautious participation as market players adjust to post-holiday trading conditions. The availability of foreign exchange in the official market remains a major factor influencing price movements, especially as the government continues its push toward exchange rate unification.

Parallel Market Update

In the parallel market, also known as the black market, the Dollar continues to trade at higher levels than the official window. Bureau De Change operators and street traders across cities such as Lagos, Abuja, and Kano are selling the Dollar within the range of ₦1,455 to ₦1,465, depending on transaction size and location.

While the gap between the official and parallel rates still exists, it has narrowed slightly in recent weeks. This trend suggests a gradual convergence, supported by tighter monetary controls and improved monitoring of forex activities.

What’s Driving the Exchange Rate?

Several factors are shaping the Dollar-to-Naira exchange rate at the start of 2026. The return of full business operations after the festive period has led to increased Dollar demand, particularly from manufacturers and importers restocking for the first quarter of the year. This renewed demand is placing upward pressure on the exchange rate.

At the same time, investors and market watchers are closely tracking the CBN’s foreign reserve position and any possible interventions aimed at boosting liquidity in the market. Confidence in these measures will play a key role in determining whether the Naira can sustain its modest recovery.

Outlook

In the near term, the Naira is expected to remain sensitive to demand pressures and policy signals from the Central Bank. While recent movements suggest some stability, sustained improvement will likely depend on consistent forex supply, investor confidence, and broader economic reforms.