The Nigerian naira kicked off February 2026 with a robust performance in the official foreign exchange market, closing Monday at N1,354.9 per US dollar — its strongest level since May 29, 2024, when it traded at N1,329.65.
According to Central Bank of Nigeria (CBN) data, the naira appreciated from Friday’s close of N1,363/$ and marked a significant week-on-week gain of nearly N30 from the previous Monday’s N1,384.5/$. The movement signals continued stability and improving liquidity conditions at the official window as the new month begins.
The appreciation comes ahead of the CBN’s 304th Monetary Policy Committee (MPC) meeting, scheduled for February 23–24, 2026 the first MPC session of the year. The committee is expected to review inflation trends, foreign exchange developments, and broader monetary conditions following its November 2025 decision to hold the Monetary Policy Rate (MPR) at 27%. The last rate adjustment occurred in September 2025, when the MPC cut the MPR by 50 basis points from 27.5% to 27%.
In the parallel (black) market, the naira traded at N1,443.40/$ on Monday slightly weaker than recent levels — resulting in an official–parallel premium of approximately N88.5. While still elevated, the gap has narrowed from peaks above N100 recorded earlier in January, reflecting gradual improvements in market alignment.
The stronger official rate provides meaningful relief to importers, manufacturers, and households requiring foreign exchange for goods, education, healthcare abroad, and raw material imports. It also helps moderate imported inflation and supports the CBN’s efforts to anchor price expectations.
The performance builds on momentum established in late 2025 and early 2026, driven by:
– Steady external reserve build-up (recently above $46 billion)
– Improved FX inflows from oil receipts, diaspora remittances, and portfolio investments
– Ongoing reforms, including enhanced transparency and liquidity management measures
Market participants view the N1,354.9 close as a positive signal of progress in FX market stability, though challenges remain in fully converging official and parallel rates.
With reserves providing a solid buffer and the MPC meeting approaching, attention will focus on whether the naira can sustain or build on its early-February strength. The outcome of the February MPC decision — and any guidance on the future path of monetary policy will be closely watched for its potential impact on exchange-rate dynamics and broader economic confidence.
