The Nigerian Naira maintained a steady performance against the US Dollar during early trading on Wednesday, February 25, 2026. Data from the Nigerian Foreign Exchange Market (NFEM) and informal sources indicate that the currency is benefiting from a period of lower volatility, supported by consistent policy measures from the Central Bank of Nigeria (CBN).
Official Market Performance (NFEM)
In the official window, the Naira was quoted at an opening rate of 1,351.13 per dollar. As the morning progressed, the rate experienced minor fluctuations, at one point touching 1,352.02 before retracing to 1,350.88 by 7:30 AM WAT. This reflects a stable trend compared to the closing rates observed at the start of the week.
The recent stability in the NFEM is largely attributed to the central bank’s ongoing strategy of maintaining a transparent price discovery mechanism. Authorized dealers report a healthy level of liquidity, which has prevented the sharp, unpredictable swings that characterized the market in previous years. The simple average or mean rate for the week continues to hover around the 1,348 mark, indicating a very narrow trading corridor.
Parallel Market Trends
The parallel market continues to shadow the official rate closely, with the US dollar being exchanged at rates ranging between 1,355 and 1,365 per dollar. The historically low spread between the official and “black market” rates—currently less than 1.5%—is a testament to the success of the current harmonization policies.
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Traders in major financial hubs like Lagos and Kano note that while there is steady demand for small-scale retail transactions, the absence of massive speculative hoarding has kept the informal rate from breaking away from the official benchmark.
Key Economic Drivers
Several factors are influencing the Dollar-to-Naira pair this Wednesday:
Interest Rate Environment: The Monetary Policy Rate (MPR) currently stands at 26.50%, a high-yield environment that continues to attract foreign portfolio investment and encourages domestic savings in the local currency.
Inflationary Outlook: With January 2026 inflation recorded at 15.10%, the market is pricing in a “real rate” that is increasingly attractive to investors, providing a fundamental floor for the Naira.
Foreign Reserves: Robust external reserves, currently estimated at over 47 billion dollars, have given the CBN sufficient capacity to intervene and smooth out any temporary liquidity mismatches.
As the trading week continues, market analysts expect the Naira to remain within the 1,345 to 1,355 range in the official window, barring any unexpected shifts in global oil prices or major changes in the US Federal Reserve’s interest rate path.
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