The Nigerian naira has opened the first trading week of February 2026 on a stable note, holding firm around the ₦1,390 range in the official foreign exchange market. As businesses fully resume activities for the new month, the FX market continues to benefit from improved liquidity, following sustained interventions by the Central Bank of Nigeria (CBN) in January.
Official Market Update
At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading on Monday, February 2, at about ₦1,398.86 to the dollar. By mid-morning, the local currency showed a mild appreciation, with the dollar exchanging at around ₦1,396.88.
Early trading data reflected a calm session, with the exchange rate moving within a narrow band — a session high of ₦1,398.86 and a low of ₦1,394.13. Analysts attribute this relative stability to the CBN’s ongoing efforts to clear verified FX backlogs, as well as the adoption of the Electronic Foreign Exchange Matching System (EFEMS), which has improved transparency and efficiency in price discovery.
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Parallel Market Situation
The parallel market has largely followed the trend in the official window, though at a higher rate as expected. In key cities such as Lagos, Abuja and Kano, Bureau De Change operators quoted the dollar at between ₦1,465 and ₦1,480.
Ordinarily, the start of a new month comes with increased demand for foreign exchange due to imports, travel and school fees. However, traders say the market has remained unusually calm. This is largely due to reduced speculative activity, as the narrowing gap between the official and parallel market rates has discouraged hoarding and arbitrage. Supply in the informal market is said to be sufficient to meet routine retail needs, including small business transactions and personal remittances.
Snapshot of Rates
NFEM (Official) Opening Rate: ₦1,398.86
NFEM (Official) Mid-session Rate: ₦1,396.88
Parallel Market Rate: ₦1,465 – ₦1,480
Looking ahead, the outlook for the naira in February remains cautiously optimistic. With external reserves holding steady and crude oil production gradually improving, economists believe the currency may sustain its current level in the near term. Market watchers will be paying close attention to trading volumes in the official market this week, as they will provide clearer insight into the depth of liquidity and the durability of the naira’s stability.
