The Nigerian naira has recorded its first drop against the United States dollar in 2026, ending weeks of relative stability in the official foreign exchange market. The currency weakened slightly on the back of increased dollar demand from importers and businesses, putting pressure on supply at the Central Bank of Nigeria’s official window.

Market analysts say the depreciation is not yet a major concern but should be monitored closely. They explained that January often comes with high dollar demand due to import payments, school fees abroad and profit repatriation by foreign investors, which usually affects the naira’s performance.

Despite the decline, Nigeria’s foreign reserves remain strong, and the CBN continues to intervene in the market to reduce volatility. Experts believe that sustained reforms, improved export earnings and higher foreign inflows can help stabilise the naira in the coming weeks.

Financial experts are also urging the government to support local production and reduce dependence on imports. According to them, strengthening manufacturing, agriculture and non-oil exports is the most sustainable way to protect the naira from future shocks.