The Nigerian Naira continued its upward momentum against the U.S. Dollar on Thursday, February 5, 2026, extending its winning streak in both the official and parallel foreign exchange markets. The steady improvement reflects growing liquidity and renewed confidence in the local currency.
Official Market Performance
In the Nigerian Foreign Exchange Market (NFEM), the Naira opened Thursday’s session at ₦1,368.56 per dollar and later adjusted slightly to ₦1,371.40 by mid-morning.
This marks a notable appreciation from the ₦1,388 level recorded the previous day. Analysts attribute the sustained recovery to the Central Bank of Nigeria’s (CBN) aggressive market interventions, enhanced liquidity management, and rising external reserves, which have strengthened the country’s capacity to withstand external shocks.
The CBN’s Electronic Foreign Exchange Matching System (EFEMS) has also been credited for improving transparency and narrowing the bid-ask spread in the official window, contributing to market stability.
Parallel Market Trends
The positive sentiment has spilled over into the parallel market, where the naira continues to gain ground. In key trading hubs such as Lagos, Abuja, and Kano, the dollar traded between ₦1,450 and ₦1,465 — one of the narrowest spreads seen in recent months.
Bureau De Change operators report that demand remains stable, with less speculative activity than before. They also noted that inflows from diaspora remittances and small-scale exports are helping sustain dollar supply in the informal market.
Summary of Exchange Rates (February 5, 2026)
- NFEM (Official) Opening Rate: ₦1,368.56/$
- NFEM (Official) Midday Rate: ₦1,371.40/$
- Parallel Market Range: ₦1,450 – ₦1,465/$
Outlook
Market analysts remain optimistic about the naira’s short-term performance, predicting that the local currency could test the ₦1,350 level if liquidity levels stay robust through the end of the week.
The ongoing stability, they noted, is offering much-needed relief to importers, manufacturers, and consumers managing international transactions amid Nigeria’s broader economic reforms.
