The Nigerian currency market opened the first Friday of 2026 with subtle shifts as the British Pound continues to hold a strong position against the local currency. Data from both the official Nigerian Foreign Exchange Market (NFEM) and the parallel market reflect a period of relative volatility as traders adjust to the new year’s economic landscape.
Official Market Performance
In the official NFEM window, the British Pound began the day trading at approximately 1,949 NGN per 1 GBP. Throughout the early morning hours, the rate saw minor fluctuations, peaking briefly near 1,951 NGN before retracing toward the 1,948 NGN level by 6:00 AM.
This narrow trading range suggests a measured approach by institutional players and the Central Bank as they manage liquidity during the holiday-shortened trading week.
Parallel Market Trends
In the parallel (black) market, the exchange rate remains slightly higher, as is typical due to immediate accessibility and informal demand. Reports from currency speculators in major hubs like Lagos and Abuja indicate that the British Pound is being exchanged at a premium, generally hovering between 1,980 NGN and 2,010 NGN depending on the volume of the transaction and the specific location.
While the gap between the official and parallel rates persists, it remains within a manageable margin compared to the wider spreads seen in previous years, reflecting ongoing efforts toward market unification.
Key Drivers and Outlook
Market analysts suggest that several factors are currently influencing the GBP/NGN pair:
Holiday Remittances: A surge in seasonal inflows from the Nigerian diaspora in the UK has provided some support for the Naira, preventing a more aggressive slide.
Inflationary Pressures: Persistent domestic inflation continues to put downward pressure on the Naira’s purchasing power.
Central Bank Interventions: Market participants are closely watching for any new policy directives from the Central Bank of Nigeria (CBN) that might aim to stabilise the currency during this fiscal quarter.
As the day progresses, the exchange rate is expected to remain sensitive to oil price movements and global trends in the strength of the British Pound.
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