The naira weakened against major foreign currencies in the official market on Monday, January 19, pressured by stronger demand and limited dollar supply in the absence of visible intervention by the Central Bank of Nigeria (CBN).

Data from the Nigerian Foreign Exchange Market (NAFEX) showed the naira fell by N2.33, or 0.16 per cent, to close at N1,420.28 per dollar, compared with N1,417.95 recorded in the previous session.

The Nigerian currency also depreciated against the British pound, losing N4.56 to settle at N1,905.80 per pound, while it declined by N5.27 against the euro to close at N1,652.78.

Banks international payments

In contrast, the naira strengthened slightly at Guaranty Trust Bank’s foreign exchange desk, where it appreciated by N3 to trade at N1,424 per dollar, compared with N1,427 last Friday.

Abudullai a BDC trader told Legit.ng that the naira exchange rate in the parallel market also known as the black market was unchanged in the parallel market.

He said: "We sold the dollar at N1,485 per dollar."

Market analysts projection for naira

Market analysts attributed the weakness in the official window to demand outpacing available supply, as the apex bank stayed on the sidelines during the trading session.

However, expectations remain that improved dollar inflows from the CBN, exporters, importers and non-bank corporates could support liquidity and stabilise the market.

Meanwhile, Nigeria has recorded improved macroeconomic projections, with forecasts pointing to stronger economic growth and lower inflation in 2026, driven by ongoing reforms.

The Chartered Institute of Bankers of Nigeria (CIBN) also projected a single-digit interest rate for the year, alongside a more positive outlook for the economy.

Despite fluctuations in oil earnings, Nigeria’s external reserves rose by $40.71 million from the previous day to stand at $45.90 billion, providing modest support for the country’s foreign exchange position.