The naira began February 2026 on a stronger footing, appreciating against the United States dollar to close at N1,384.5/$ at the official foreign exchange market on the first trading day of the month.
This is according to data published on Monday by the Central Bank of Nigeria (CBN).
The modest appreciation marks a positive start to the month for the local currency, reflecting improved market alignment and relatively stronger buffers compared with the same period last year.
The naira’s performance represents a slight improvement from its position at the end of January and continues to highlight a narrowing gap between the official and parallel markets—an indicator closely watched by market participants and policymakers.
At the official foreign exchange market, the naira closed at N1,384.5/$ on the first trading day of February 2026, strengthening from N1,391/$ recorded on the final trading day of January 2026.
On a year-on-year basis, the currency also traded significantly stronger than in early February 2025, when it closed at approximately N1,500/$ at the official market.
Data compiled by Nairametrics indicate that February 2025 opened with the naira trading as weak as N1,620/$ in the parallel market, resulting in an official parallel market gap of N111.
By contrast, the parallel market opened in February 2026 with the naira exchanging at N1,453/$, narrowing the gap with the official rate to N62, compared with N68 recorded at the end of January 2026.
The reduced spread between both markets suggests improved price discovery and stronger alignment in the foreign exchange market at the start of the month.
Beyond the day-to-day movement, broader indicators point to a relatively more stable exchange rate environment compared with the volatility experienced in early 2025.
Throughout February 2025, the naira consistently traded above the N1,500/$ level at the official market, reflecting heightened pressure and uncertainty during that period.
In contrast, February 2026 has opened with a comparatively stronger position across both the official and parallel markets.
However, analysts caution that demand pressures and exposure to external shocks remain key risks that could influence near-term exchange rate movements. As a result, while the narrowing market gap is a positive signal, it continues to be viewed with measured optimism by market observers.
Source: Nairametrics