The Nigerian Naira traded on a steady note against the US Dollar in the early hours of Tuesday, February 24, 2026, reflecting the continued impact of interventions by the Central Bank of Nigeria.
At the Nigerian Foreign Exchange Market (NFEM), the local currency opened at ₦1,344.65 per dollar, slightly above Monday’s closing rate of ₦1,343.81. During intraday trading, the Naira moved within a narrow band, touching a high of ₦1,342.50 and a low of ₦1,346.87. The tight movement signals relative calm in the official window compared to the volatility seen in previous months.
A major factor behind this stability is improved liquidity. The CBN’s recent framework allowing licensed Bureau De Change (BDC) operators to access up to $150,000 weekly has helped decentralize dollar supply. By spreading access more evenly across the market, pressure that once built up in the official window has eased significantly.
Parallel Market Shows Convergence
The parallel market is also reflecting improved balance. Across major trading hubs, the dollar exchanged between ₦1,335 and ₦1,345. In some cases, the Naira even traded slightly stronger than the official rate — an uncommon development that traders attribute to better price discovery and reduced speculative demand.
Forex dealers in Lagos and Abuja say the panic-driven buying that once defined the market has largely subsided. With both official and informal rates moving closer together, businesses and travelers are experiencing a more predictable environment.
Economic Factors Supporting the Naira
Several macroeconomic developments are providing a supportive backdrop:
Inflation Cooling: Headline inflation slowed for the tenth consecutive month, falling to 15.10% in January 2026. Lower food and energy prices have reduced pressure on household demand for foreign currency.
Stronger External Reserves: Nigeria’s foreign reserves have climbed to about $47.81 billion, giving the CBN more room to defend the currency when necessary.
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Improved Oil Output: Crude oil production recently rose to 1.46 million barrels per day, strengthening foreign exchange inflows and supporting the country’s balance of payments.
With these factors in play, analysts expect the exchange rate to trade within the ₦1,340 to ₦1,350 range in the near term. Market participants are now looking ahead to the next Monetary Policy Committee (MPC) meeting, where further guidance on interest rates and currency management is expected.
