The naira appreciated against the United States dollar on the first trading day of February 2026, closing at N1,384.5/$ at the official foreign exchange market.
This is according to data published on the Central Bank of Nigeria’s (CBN) website on Monday.
The improvement marks a modest but notable gain for the local currency as it begins a new month amid signs of improved market alignment and relatively stronger buffers compared with the same period last year.
The naira’s latest performance reflects a slight strengthening from its position at the end of January and highlights a narrowing gap between the official and parallel markets, a key indicator closely monitored by market participants and policymakers.
What the data is saying
The official foreign exchange market showed a firmer naira position at the start of February 2026 compared with recent trading sessions and the same period last year.
- The naira closed at N1,384.5/$ on the first trading day of February 2026, compared with N1,391/$ on the final trading day of January 2026.
- On a year-on-year basis, the currency traded significantly stronger than the first trading day of February 2025, when it closed at about N1,500/$ at the official market.
- Data compiled by Nairametrics show that February 2025 opened with the naira trading as weak as N1,620/$ in the parallel market, creating an official–parallel market gap of N111.
- In contrast, the parallel market opened in February 2026 with the naira exchanging at N1,453/$, narrowing the gap with the official rate to N62, compared with N68 recorded at the end of January 2026.
The narrowing gap between both markets suggests relatively improved price discovery and alignment in the foreign exchange market at the start of the month.
More insights
Beyond the day-on-day movement, broader indicators point to a relatively more stable environment compared with the volatility seen in early 2025.
- Throughout February 2025, the naira consistently traded above the N1,500/$ level at the official market, reflecting heightened volatility during that period.
- The current February 2026 opening levels indicate a comparatively stronger starting position, both at the official and parallel markets.
- Despite the improvement, demand pressures and exposure to external shocks remain key risks that could influence near-term exchange rate movements.
These factors underscore why the narrowing gap, while positive, is being viewed cautiously by market watchers.
What you should know
Nigeria’s external reserves continue to provide an important buffer for exchange rate management and market confidence.
- As of the period under review, Nigeria’s external reserves stood at $46.18 billion, supporting the Central Bank’s capacity to manage foreign exchange market fluctuations.
- Nairametrics recently reported that external reserves have crossed the $46 billion mark for the first time in about eight years.
- Stronger reserves help improve confidence in the official FX framework and provide room for intervention during periods of heightened volatility.
- The reserves position also plays a role in sustaining improved alignment between the official and parallel markets, particularly during periods of increased dollar demand.
