Naira Records First Loss in 2026 as CBN Sells Dollar
- The naira fell at the official market and in the parallel market despite improved forex liquidity
- Total FX inflows rose 38% month on month to $2.8 billion in December 2025, driven mainly by higher CBN dollar sales
- Analysts predicted stronger inflows in coming months on attractive trade opportunities
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira recorded its first loss of 2026, slightly depreciating against the US dollar in the foreign exchange market.
According to the CBN data at the Nigerian Foreign Exchange Market, the naira fell by 0.1% on Thursday, January 8, with the dollar quoted at N1,419.71, compared with N1,418.26 on Wednesday, January 7.
Source: Getty Images
In the parallel market, the currency was unchanged.
Abudullahi, a BDC trader told Legit.ng
"Today's rate was similar to yesterday, We sold dollar at N1,490 and buy at N1,475."
Here is a breakdown of naira rates in 2026 so far
- January 08, 2026: N1,419.93
- January 07, 2026: N1,418.44
- January 06, 2026: N1,420.12
- January 05, 2026: N1,429.41
- January 02, 2026: N1,431.13
CBN dollar supply
BusinessDay reports that total dollar inflows into the FX market rose by 38% month on month to $2.8 billion in December, data from FMDQ showed.
The rebound followed a sharp 67% contraction in November, although December’s supply still ranked as the second weakest level recorded over the past 16 months, underscoring lingering fragilities in inflows.
Apart from domestic corporate inflows, which declined by 5% to $420 million, all other FX supply sources recorded improvements during the period.
Analysts at FBNQuest attributed the recovery largely to stronger intervention by the CBN.
FX sales by the apex bank rose sharply to $654 million in December from $318 million in the previous month, reflecting efforts to support market liquidity amid subdued participation from offshore investors.
Foreign portfolio inflows increased modestly by 7% month on month to $632 million, a sharp slowdown from the $3.5 billion recorded in October, as foreign investors reduced exposure toward year-end for profit-taking and portfolio rebalancing.
FBNQuest expects investor activity to strengthen in the coming months, supported by attractive domestic carry trade opportunities.
FX reserves rise
Nigeria’s external reserves also recorded a modest improvement, rising to $45.64 billion as of January 7, 2026, from $45.62 billion the previous day, enhancing the CBN’s capacity to intervene in the FX market.
On the inflow components, foreign direct investment more than quadrupled to $50.1 million in December, while contributions from exporters, importers and individuals rose sharply, supporting the month-on-month recovery in FX supply.
Looking ahead, FBNQuest analysts said softer inflation expectations and a potentially more dovish stance by the US Federal Reserve in 2026 could support improved risk appetite and stronger capital inflows into Nigeria.
Nigeria sees 200% growth in diaspora remittances
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) governor, Olayemi Cardoso, announced that remittances from Nigerians abroad have surged in the past two months, rising from about $200 million to $600 million.
Speaking at the Delta state-Brazil Business and Investment Roundtable in São Paulo, Brazil Cardoso noted that the country’s foreign exchange inflows are improving significantly, with projections suggesting they could reach at least $1 billion by year-end.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
