Pound to Naira Today: GBP Trades Wide Between Official, Black Markets on January 5, 2026

Nigeria’s foreign exchange market opened the first trading week of 2026 with the British Pound Sterling (GBP) continuing to record a wide gap between official and unofficial exchange rates, as the Naira remains under pressure across market segments.

Official Market (NFEM) Update
At the Nigerian Foreign Exchange Market (NFEM), the Pound opened trading on Monday, January 5, at an average rate of ₦1,936.43. The official window, which captures regulated central bank activity and large institutional transactions, showed moderate intraday movement.

Early trading data indicated the Pound fluctuated between ₦1,927.43 and a high of ₦1,937.56, pointing to relative stability but sustained demand for the British currency for trade, education and service-related payments.

Parallel Market Performance
In the parallel, or black market, the Pound continued to trade at a sharp premium. Dealers in key centres such as Lagos’ Broad Street and Abuja’s Wuse Zone 4 were buying the currency at about ₦2,150, while selling rates ranged between ₦2,210 and ₦2,235.

The persistent disparity between the NFEM and parallel market rates underscores ongoing difficulties faced by individuals and small businesses in accessing foreign exchange through official channels.

What’s Driving the Rates?
Analysts attribute the current exchange dynamics to several factors, including:

• Post-holiday demand: The return to full business operations after the New Year has increased demand for foreign exchange to settle overseas obligations.
• Oil revenue outlook: Market speculation around Nigeria’s crude oil production targets for the first quarter of 2026 continues to shape confidence in the Naira.
• Inflation pressures: Rising domestic inflation is weakening the Naira’s purchasing power against stronger currencies such as the Pound.

As trading continues, market participants are watching closely for any possible intervention by the Central Bank of Nigeria (CBN) aimed at boosting liquidity and narrowing the widening gap between official and parallel market rates.

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