The Nigerian naira held firm against the US dollar in early trading on Wednesday, February 25, 2026, as improved liquidity and consistent policy direction continued to steady the foreign exchange market.
At the official window of the Nigerian Foreign Exchange Market (NFEM), the currency opened at 1,351.13 to the dollar. It recorded slight movements during the morning session, briefly touching 1,352.02 before strengthening to 1,350.88 by 7:30 a.m. WAT. The narrow range reflects a calm market atmosphere compared to the volatility seen in previous years.
Market participants attribute the relative stability to ongoing reforms and tighter oversight by the Central Bank of Nigeria (CBN). The bank’s emphasis on transparent price discovery and improved liquidity management has helped reduce sharp swings in the exchange rate. Dealers say dollar supply in the official market remains adequate, with the weekly average hovering around the 1,348 mark — a sign of a controlled trading band.
In the parallel market, the dollar traded between 1,355 and 1,365, keeping the gap between official and informal rates below 1.5 per cent. Analysts say the minimal spread reflects better alignment between both markets and reduced speculative activity. Currency traders in Lagos and Kano report steady retail demand but no significant hoarding pressure.
Read Also;
CBN Cuts Interest Rate to 26.5% as Inflation Continues to Ease
Several economic factors continue to support the naira. Nigeria’s Monetary Policy Rate stands at 26.50 per cent, maintaining a high-interest environment that attracts foreign portfolio inflows and encourages domestic savings. Inflation, recorded at 15.10 per cent in January 2026, has also created a relatively attractive real return for investors holding naira-denominated assets.
In addition, foreign reserves — estimated at over $47 billion — provide the central bank with enough buffer to intervene when necessary and maintain liquidity balance.
With these fundamentals in place, analysts expect the naira to trade within the 1,345 to 1,355 range in the official window for the rest of the week, unless global oil prices shift sharply or there are unexpected changes in U.S. monetary policy.
