The Nigerian currency strengthened further against the United States dollar in early trading on Thursday, February 5, 2026, extending gains recorded earlier in the week as liquidity conditions in the official market remained supportive.
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira opened trading around 1,368.56 to the dollar before adjusting slightly to about 1,371.40 by mid-morning. The figure marks an improvement from the roughly 1,388 rate recorded a day earlier.
Market watchers linked the sustained appreciation to ongoing interventions by the Central Bank of Nigeria and growth in the country’s external reserves, which analysts say have helped stabilize supply. They also credited the Electronic Foreign Exchange Matching System for improving transparency and tightening spreads within the official window.
Activity in the parallel market mirrored the firmer official trend. In key commercial hubs including Lagos, Abuja and Kano, the dollar traded between 1,450 and 1,465. Although the informal market continues to command a premium over official rates, the gap has narrowed compared with previous months.
Currency dealers said retail demand has remained relatively calm, with fewer signs of speculative pressure. Inflows from diaspora remittances and proceeds from small-scale exports were cited as contributing to dollar availability for personal transactions.
Traders said sentiment around the naira remains cautiously optimistic heading into the end of the week. If supply conditions hold steady in the official window, analysts believe the currency could edge closer to the 1,350 level. For businesses and households reliant on foreign exchange, the recent stability offers temporary relief in planning cross-border payments.
