The Nigerian Naira maintained a stable yet cautious trajectory against the US Dollar in the early trading hours of Friday, February 20, 2026.
Data from the Nigerian Foreign Exchange Market (NFEM) and informal channels show that the local currency is navigating moderate volatility as the Central Bank of Nigeria (CBN) continues efforts to harmonise rates across market segments.
Official Market Performance (NFEM)
In the official window, the Naira opened at 1,344.74 per dollar. Trading during the morning saw minor fluctuations, peaking at 1,345.58 before settling near 1,345.40 by mid-day. This follows a closing rate of 1,346.00 at the end of the previous trading day, February 19.
The narrowing spread is attributed to improved liquidity from international counterparties and the policy allowing Bureau De Change (BDC) operators access to up to 150,000 dollars weekly through authorised dealer banks. This has eased retail demand pressures that usually push official rates higher.
Parallel Market Trends
In the informal market, the dollar continues to trade at a premium, though the gap is narrower than in past years. This morning, rates ranged between 1,360 and 1,365 per dollar, depending on transaction volume and location.
Analysts note that while the “black market” still offers immediate access, the steady supply in the NFEM has prevented the sharp spikes seen during scarcity. The current gap between official and parallel market rates is roughly 15 to 20 Naira, closely monitored by authorities to ensure transparent price discovery.
Factors Influencing the Market
- Crude Oil Production: Nigeria’s crude output rose to 1.46 million barrels per day, boosting foreign reserves and giving the CBN more leverage for intervention.
- Monetary Policy: The Standing Deposit Facility and stable Open Repo Rates have helped manage Naira liquidity, reducing excess local currency chasing limited dollars.
- Institutional Inflows: Increased foreign capital from institutional investors in the Nigerian equity market has provided a steady inflow of dollars.
Market watchers expect the Naira to trade between 1,340 and 1,350 in the official window for the remainder of the day, barring any major global or domestic policy shifts.