Naira Falls to N1,390 Per Dollar as FX Payments Increase
The naira fell against the US dollar at the official window on Monday as international transaction payments eclipsed FX liquidity in the currency market.
The Central Bank said in its daily FX update that the local currency lost N3.81 per dollar as the Nigerian Foreign Exchange Market (NFEM) opened the month of February on a weak note.
FX traders said the decline in value was driven by stronger demand compared to the available supply as the Naira traded within the ₦1,381/$ and ₦1,396/$ band during the session before settling at ₦1,390.36/$.
Naira gained 3.55% last month despite lower FX intervention. In the parallel market, the naira rose by 0.17% to ₦1,442/$, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
Updated data showed that Nigeria’s gross external reserves printed at $46.18 billion as of 29 January 2026, reflecting an addition of $62.40 million amidst uncertainties in the oil market.
Global oil prices fell 5% on Monday after U.S. President Donald Trump said Iran was “seriously talking” with Washington, signaling a de-escalation of tensions with the OPEC member, while a stronger dollar and milder weather forecasts also pressured prices.
Brent crude dipped 4.59% or $3.18, hovering around $66.14 per barrel, while U.S. West Texas Intermediate (WTI) fell 5.06%, to around $61.91.
Similarly, gold prices have fallen roughly 10% in the past two days after hitting record highs last week, as CME Group raised margin requirements following a sharp metals selloff that was triggered by Kevin Warsh’s nomination as the next U.S. Federal Reserve Chair.
Spot gold price declined 169bps to $4,660.45/oz, while U.S. gold futures fell 178bps, hovering around $4,677.66/oz.
Analysts at AIICO Capital Limited expect markets to trade mixed to cautious, with safe-haven demand supporting gold and gold ETFs amid a weak dollar and uncertain oil price direction.
