The Nigerian naira continued its appreciation against the United States dollar in early trading on Thursday, February 5, 2026, extending the positive momentum recorded since the beginning of the week.
The local currency strengthened further in the official market as improved liquidity and sustained interventions by the Central Bank of Nigeria (CBN) boosted confidence among market participants.
Official Market Performance
At the Nigerian Foreign Exchange Market (NFEM), the naira opened trading at ₦1,368.56 to the dollar. By mid-morning, the exchange rate adjusted slightly to ₦1,371.40, reflecting steady market activity.
This marks a significant improvement from the ₦1,388 level recorded just a day earlier, underscoring the naira’s ongoing recovery. Analysts attribute the gains to the CBN’s aggressive market-matching strategy, alongside the steady growth of Nigeria’s external reserves, which has helped shield the economy from external pressures.
Market observers also point to the increased transparency of the Electronic Foreign Exchange Matching System (EFEMS), which has contributed to tighter bid-ask spreads and improved price discovery in the official window.
Parallel Market Movement
The parallel market mirrored the trend in the official segment, with the dollar weakening slightly across major commercial hubs. In Lagos (Ikeja and Island), Abuja, and Kano, the dollar exchanged between ₦1,450 and ₦1,465.
Although the informal market continues to trade at a premium to the official rate, the gap has narrowed to one of its lowest levels in recent months. Bureau de Change operators say demand remains steady but largely free of speculative pressure.
According to operators, increased inflows from diaspora remittances and small-scale export proceeds have helped support dollar supply in the retail market.
Exchange Rate Snapshot for February 5
NFEM Opening Rate: ₦1,368.56
NFEM Mid-Session Rate: ₦1,371.40
Parallel Market Rate: ₦1,450 – ₦1,465
Outlook
The naira’s outlook remains positive for the rest of the week. Analysts believe that if current dollar supply levels in the official market are sustained, the currency could test the ₦1,350 support level before the close of trading on Friday.
For businesses and consumers engaged in foreign transactions, the recent stability offers a much-needed respite after months of volatility.
Naira Strengthens Against Dollar as Official Market Records Fresh Gains
