The Nigerian Naira maintained a strong position against the US Dollar on Friday, February 27, 2026, ending the trading week on a favourable note. Live figures from the Nigerian Foreign Exchange Market (NFEM) and parallel market sources indicate that the currency remained stable, supported by a sharp rise in the nation’s external reserves and a recent adjustment in monetary policy direction.
Official Market Performance (NFEM)
At the official NFEM window, the Naira began trading at 1,355.25 per dollar. Activity remained largely stable during the early session, with the rate strengthening slightly to 1,353.97 by 2:30am WAT. This performance follows a midweek average of about 1,356.97, signalling that the domestic currency is holding its ground despite external economic pressures.
The steady rate reflects improved liquidity across the banking sector. Authorised dealers reported a sustained supply of foreign exchange, enabling the system to meet demands for dividend payments and import financing without the sharp fluctuations experienced in previous years.
Parallel Market Trends
The parallel market has continued to mirror the official window closely. Across informal trading centres in Lagos, Abuja and Kano, the dollar exchanged between 1,358 and 1,368 per dollar.
The gap between both markets has stayed narrow, typically within a 1 to 1.5 per cent margin. Analysts credit this development to the Central Bank of Nigeria’s (CBN) effective incorporation of Bureau De Change (BDC) operators into the formal distribution framework, a move that has curbed speculative activities and stabilised retail expectations.
Key Economic Drivers
Several macroeconomic factors supported the Naira’s performance:
Foreign Reserves Milestone: The CBN recently disclosed that Nigeria’s external reserves have risen to a 13-year peak of 50.45 billion dollars, covering nearly 10 months of imports and strengthening the apex bank’s capacity to defend the currency.
Monetary Policy Cut: Demonstrating increased confidence in economic stability, the Monetary Policy Committee (MPC) reduced the benchmark interest rate by 50 basis points to 26.5 per cent earlier in the week. This followed a decline in headline inflation to 15.10 per cent in January 2026.
Oil and Refining Impact: Expanded domestic refining capacity, driven by the scaling up of the Dangote Refinery to 700,000 barrels per day, has significantly lowered the need for foreign exchange to finance fuel imports.
Favourable Oil Production: Enhanced security in the Niger Delta has sustained crude oil output at 1.46 million barrels per day, ensuring steady foreign exchange inflows.
As trading draws to a close for the week, projections for the Naira remain cautiously positive. Market observers are monitoring the 1,350 support level closely, with expectations that the currency will sustain its current trend if global oil prices remain above 75 dollars per barrel.