The Nigerian naira ended the week on a steady note on Friday, February 27, 2026, holding firm against the US dollar amid improved liquidity and stronger external reserves.
At the Nigerian Foreign Exchange Market (NFEM), the currency opened at ₦1,355.25 to the dollar and appreciated slightly during early trading to ₦1,353.97. The relatively calm trading session reflects a market that has found balance, with the naira managing to resist fresh depreciation despite ongoing global pressures.
Dealers say liquidity in the banking system has improved significantly, allowing demand for imports and dividend payments to be met without the sharp spikes that previously unsettled the market. The mid-week average rate hovered around ₦1,356.97, reinforcing the currency’s stability.
In the parallel market, the dollar traded between ₦1,358 and ₦1,368 in major cities such as Lagos, Abuja and Kano. The gap between the official and parallel markets remained narrow, within about one to 1.5 per cent — a sign of increased alignment between both segments.
Analysts attribute this convergence to the Central Bank of Nigeria’s ongoing reforms, including the structured integration of Bureau De Change operators into the formal foreign exchange framework, which has helped curb speculative activity.
Several economic factors are supporting the naira’s resilience. Nigeria’s external reserves have risen to $50.45 billion, a 13-year high, providing close to 10 months of import cover and giving monetary authorities greater capacity to defend the currency.
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Earlier in the week, the Monetary Policy Committee cut the benchmark interest rate by 50 basis points to 26.5 per cent, citing easing inflation, which dropped to 15.10 per cent in January. The move signaled confidence in the country’s disinflation trend and broader economic stability.
In addition, increased domestic refining capacity — particularly with expanded output from the Dangote Refinery — has reduced pressure on foreign exchange previously used for fuel imports. Steady crude oil production of about 1.46 million barrels per day has also helped sustain foreign exchange inflows.
As the market heads into the weekend, analysts say the outlook for the naira remains cautiously optimistic. Many expect the currency to maintain its current range, especially if global oil prices stay above $75 per barrel.
