The Nigerian Naira opened the third week of February 2026 on a strong footing, sustaining its recent improvement against the United States Dollar. When trading began on Monday morning, the local currency demonstrated stability, buoyed by ongoing liquidity support and a reduction in speculative demand across foreign exchange markets.
Official Market Trends
In the Nigerian Foreign Exchange Market (NFEM), the Naira started the week at around 1353.54 to the dollar. As trading continued into mid-morning, the rate showed slight movement, with the Naira quoted at 1354.15 per dollar. This steady performance comes after a solid first half of the month, during which the Naira held above the significant 1400 resistance level. Financial experts attribute this to the Central Bank of Nigeria’s (CBN) commitment to transparent foreign exchange pricing and the effective operation of the Electronic Foreign Exchange Matching System (EFEMS). Additionally, recent measures to boost liquidity at the retail level through licensed Bureau De Change operators have helped ease pressure on the official market.
Parallel Market Realities
In the parallel market, the dollar exchange rate remained relatively stable, with a tight spread compared to the official rate. In major trading centres such as Lagos, Abuja, and Kano, Bureau De Change dealers reported the dollar exchanging between 1420 and 1435 naira. The lack of major volatility at the start of the week suggests growing confidence among traders in the current Naira valuation. Market participants noted that foreign exchange supply is sufficiently meeting demand for travel allowances and small business needs, while the narrowing gap between official and street rates is helping reduce speculative hoarding that once drove sharp currency swings.
Summary of Rates for February 16
- NFEM (Official) Opening: 1353.54
- NFEM (Official) Current: 1354.15
- Parallel Market Range: 1420 – 1435
Looking ahead, the outlook for the Naira through the week appears positive. With Nigeria’s external reserves showing signs of improvement and the central bank continuing proactive liquidity support, analysts believe the currency is well-placed to sustain its current position. Investors will closely monitor trading volumes throughout the day to assess the strength of support around the 1350 level.