The Nigerian Naira remained largely stable against the US dollar on Thursday, February 26, 2026, as investors continued to respond to the Central Bank of Nigeria’s recent move into what it described as a “stabilisation phase.”
After the Monetary Policy Committee meeting earlier this week, the local currency has been trading within a narrow range, supported by a strong build-up in foreign reserves — now at a 13-year high.
Official Market Performance
At the official window, the Naira opened trading at 1,351.12 per dollar. It strengthened slightly during the morning session to 1,347.99 before settling around 1,350.13. The movement reflects relative calm in the market following the 50-basis-point reduction in the Monetary Policy Rate (MPR).
Liquidity conditions remain firm, with the Central Bank of Nigeria continuing efforts to manage excess banking system liquidity while maintaining steady dollar supply for critical imports. The weekly average rate has hovered around 1,349, indicating reduced volatility in the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) window.
Parallel Market Stability
The parallel market also reflected similar calm, with the dollar trading between 1,355 and 1,365. The gap between official and parallel market rates has stayed relatively tight at under 1.5 percent.
Currency traders in Lagos and Abuja say demand is currently being adequately met, helped by the apex bank’s decision to grant Bureau De Change operators improved access to foreign exchange. This has eased speculative pressure that often widens the gap between official and street rates.
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Dollar to Naira exchange rate today, February 25, 2026
What’s Driving the Trend?
Several factors are supporting the Naira’s stability:
Interest Rate Adjustment: The reduction of the MPR to 26.50 percent signals confidence in easing inflation. Although rate cuts can weaken a currency, investors appear to interpret this move as a shift toward sustainable economic growth.
Stronger Foreign Reserves: Nigeria’s external reserves have climbed to $50.45 billion — the highest in 13 years — providing close to 10 months of import cover and strengthening the country’s buffer against external shocks.
Cooling Inflation: Headline inflation slowed to 15.10 percent in January, marking ten straight months of decline. Lower inflation supports the Naira’s purchasing power and investor confidence.
Economic Growth Outlook: With GDP growth projected at 4.68 percent for 2026, market sentiment remains positive, encouraging medium- to long-term capital inflows.
Analysts expect the Naira to trade within the 1,345 to 1,355 range in the coming days, as investors await further policy direction, particularly around reforms in the energy and agricultural sectors.
