Naira at a crossroads as dollar holds tight grip

 

The Nigerian Naira traded steadily against the US Dollar in the early hours of Tuesday, February 24, 2026, as the Nigerian Foreign Exchange Market (NFEM) reflected the continued impact of interventions by the Central Bank of Nigeria.

Latest data indicates that the local currency remains within a narrow band, supported by a significant reduction in the gap between official and parallel market rates.

At the official window, the Naira opened at N1,344.65 per dollar, slightly above Monday’s closing rate of N1,343.81. During intraday trading, it recorded a high of N1,342.50 and a low of N1,346.87.

Market stability has largely been driven by improved liquidity. Recent policy adjustments by the CBN now permit licensed Bureau De Change (BDC) operators to access up to $150,000 weekly. This move has broadened access to foreign exchange and reduced pressure that previously pushed up rates in the official segment.

In the parallel market, the dollar traded between N1,335 and N1,345 across major trading hubs. In some instances, the Naira even exchanged slightly stronger than the official rate — an uncommon development attributed to improved market transparency and reduced speculative demand.

Currency traders in Lagos and Abuja report that the panic-driven dollar purchases seen in past years have largely subsided. The closer alignment between official and informal rates suggests that ongoing efforts to unify the forex market are beginning to yield results, fostering greater confidence among businesses and travelers.

Analysts expect the exchange rate to trade within the N1,340–N1,350 range for the remainder of the day. Market participants are now focused on the upcoming Monetary Policy Committee (MPC) meeting for further signals on interest rate direction.