The Nigerian Naira began the month of February 2026 on a positive trajectory, strengthening to ₦1,384.5 per US Dollar in the official foreign exchange market. This appreciation marks a significant recovery from the volatility seen in late January, when the currency hovered near the ₦1,500 mark.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) indicates that the Naira’s rebound is driven by increased liquidity and a slight uptick in foreign currency inflows. Traders attributed the improved performance to the Central Bank of Nigeria’s (CBN) sustained interventions and recent policy adjustments aimed at stabilizing the forex ecosystem. The narrowing gap between the official and parallel market rates—where the Naira is trading around ₦1,420, suggests a gradual return of investor confidence in the local currency.
Economic analysts suggest that the Naira’s resilience is also supported by Nigeria’s growing foreign reserves, which reached a multi-year high of $47 billion this week. The surge in reserves, bolstered by improved oil production and high global energy prices, has provided the CBN with the necessary fire-power to meet outstanding forex backlogs. This stability is critical for the Nigerian diaspora and international businesses, as it reduces the “uncertainty premium” that has historically plagued cross-border transactions.
However, experts warn that the sustainability of this gain depends on continued fiscal discipline. While the current rate of ₦1,384.5/$ offers a reprieve for importers and helps curb the pressure on domestic inflation, the broader economy remains sensitive to external shocks. Market participants are now closely watching the upcoming Monetary Policy Committee (MPC) meeting for signals on interest rate adjustments, which could further influence the currency’s path through the first quarter of 2026.
For the USAfrica audience, this currency strengthening represents a potentially pivotal moment for remittance value and investment planning. As the Naira finds a more stable floor, the cost of doing business and supporting families in Nigeria becomes more predictable, fostering a more conducive environment for economic engagement.
