The British Pound Sterling closed January 2026 on a relatively stable note against the Nigerian naira, as improved liquidity management by the Central Bank of Nigeria (CBN) continued to support currency stability.
At the official Nigerian Foreign Exchange Market (NFEM) on Friday, January 30, the pound opened trading at about ₦1,916.25. It traded within a narrow band, hitting a high of ₦1,917.35 and a low of ₦1,909.70, before settling at around ₦1,912.64 by mid-morning.
Analysts attributed the marginal appreciation of the naira to sustained reforms, including the Electronic Foreign Exchange Matching System (EFEMS), which has enhanced transparency and price discovery. The current level represents a marked improvement from the volatile ₦2,000-plus range recorded in the latter half of 2025, supported by stronger external reserves and steady crude oil output.
In the parallel market, the pound traded between ₦2,010 and ₦2,025. Although the informal market maintained its usual premium over the official window, traders reported limited volatility, a contrast to the sharp swings often seen at month-end.
Bureau de Change operators in Lagos, Abuja and Kano said demand for the pound was driven mainly by education-related payments and travel needs, but supply was sufficient to meet demand, preventing price spikes.
Market watchers said the narrowing gap between the official and parallel markets suggests that the official window is increasingly absorbing demand that previously flowed to the informal sector.
As trading closed for the month, analysts expressed cautious optimism that the pound-naira exchange rate could remain stable in February, especially if inflation continues to ease and current liquidity measures are sustained.
