…the Pound began the day trading at an average of ₦1,936.43.
ABUJA, NIGERIA- The iNews Times | The Nigerian foreign exchange market opened the first week of 2026 with the British Pound Sterling (GBP) maintaining a notable gap between official and parallel trading channels. As of Monday morning, January 5, the Naira continued to exhibit volatility across market segments.
At the Nigerian Foreign Exchange Market (NFEM), the Pound began the day trading at an average of ₦1,936.43. This official window, which reflects central bank-regulated activity and major institutional trades, has kept the Naira within this range as market participants adjust to early-year liquidity needs.
Data from the official window show the Pound fluctuating between a low of ₦1,927.43 and a high of ₦1,937.56 during early trading hours. The modest intraday swings indicate steady but robust demand for the British currency for official payments and services.
In the parallel, or black market, the Pound continues to trade at a premium to the official rate. Traders in key hubs such as Lagos (Broad Street) and Abuja (Wuse Zone 4) are buying the Pound at ₦2,150 and selling between ₦2,210 and ₦2,235.
The persistent gap between official and parallel rates underscores ongoing difficulties in retail access to foreign currency through the formal window.
Analysts attribute the current exchange dynamics to several factors:
Holiday Effect: The resumption of full business activity after the New Year often drives higher corporate demand for foreign exchange to settle international obligations.
Oil Production Speculation: Investor sentiment on the Naira remains sensitive to expectations for Nigeria’s oil output in the first quarter of 2026.
Inflationary Pressures: Continued domestic inflation is weighing on the Naira’s purchasing power against stronger currencies like the Pound.
As trading continues, market participants are closely monitoring for potential interventions from the Central Bank of Nigeria (CBN) to boost liquidity and narrow the gap between official and parallel market rates.
