The British Pound Sterling recorded mild volatility against the Nigerian Naira during early trading on Thursday, January 29, 2026, as currency markets reflected improving liquidity conditions and cautious investor sentiment.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the Pound opened trading at ₦1,927.89, before dipping slightly to ₦1,924.94 in early transactions. The currency later regained momentum, settling around ₦1,933.41 per Pound by mid-morning, representing a marginal gain of approximately 0.28 percent.
Financial analysts attributed the steady movement to the Central Bank of Nigeria’s continued oversight of the Electronic Foreign Exchange Matching System (EFEMS), which has improved transparency and price discovery in the official market. While the Naira has strengthened notably against the US Dollar in recent days, the Pound-Naira exchange rate remains sensitive to global market developments and recent UK economic data released earlier in the day.
In the parallel market, the Pound continued to trade at a premium, though far below the sharp spikes recorded in late 2025. Bureau De Change operators in Lagos and Abuja quoted rates ranging between ₦2,015 and ₦2,030, reflecting stable demand conditions.
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Traders noted that demand for the British currency remains largely driven by school fee payments and personal travel allowances, rather than speculative activity. This has helped maintain relative stability in the informal market, even as the official rate experiences mild intraday fluctuations.
As January draws to a close, analysts remain cautiously optimistic about the Naira’s outlook. With Nigeria’s external reserves continuing to grow, market watchers say the local currency is showing increasing resilience against the Pound and other major global currencies.