By By Elizabeth Ugbo
The Nigerian Naira traded steadily against the US Dollar on Tuesday, February 24, 2026, in the Nigerian Foreign Exchange Market (NFEM). The currency opened at ₦1,344.65 per dollar after closing at ₦1,343.81 on Monday. Intraday trading ranged between ₦1,342.50 and ₦1,346.87. Analysts attribute the stability to stronger external reserves, rising oil production, easing inflation, and sustained Central Bank interventions. Market participants now await signals from the upcoming Monetary Policy Committee (MPC) meeting.
External Reserves Strengthen Market Confidence
Nigeria’s external reserves climbed to approximately $47.81 billion. This increase has provided the Central Bank of Nigeria (CBN) with a stronger buffer against volatility.
As a result, the apex bank has improved liquidity management across the official window. The narrowing spread between official and parallel rates reflects growing investor confidence.
Oil Production Boosts Forex Inflows
Domestic crude oil production recently rose to 1.46 million barrels per day. Higher output has strengthened foreign exchange inflows.
Consequently, Nigeria’s balance of payments position has improved. Increased FX supply has also reduced speculative demand pressures in the market.
Inflation Eases for Tenth Consecutive Month
Headline inflation slowed to 15.10% in January 2026. This marks the tenth straight month of disinflation.
Food and energy prices moderated significantly. Lower inflation has reduced pressure on the Naira and improved purchasing power stability.
CBN Policy Supports Liquidity
The CBN’s revised framework allows licensed Bureau De Change (BDC) operators to purchase up to $150,000 weekly. This policy has decentralized dollar access.
Previously, concentrated demand in the official window triggered rate spikes. However, the new structure has distributed retail demand more efficiently. Trading volumes have remained healthy as a result.
Parallel Market Shows Rate Convergence
The parallel market traded between ₦1,335 and ₦1,345 per dollar across major hubs. Interestingly, some informal segments recorded slightly stronger rates than the official window.
Traders in Lagos and Abuja reported reduced panic buying. Improved price discovery and stronger FX supply have supported convergence.
Therefore, businesses and travelers now operate in a more predictable currency environment.
Market Outlook Ahead of MPC Meeting
Analysts expect the exchange rate to remain within the ₦1,340 to ₦1,350 band. Attention has shifted to the forthcoming MPC meeting.
Stakeholders anticipate guidance on interest rate direction and liquidity management. Any policy adjustment could influence short-term capital flows and currency stability.
For now, sustained interventions and improved macroeconomic fundamentals continue to anchor the Naira.
