The naira experienced a slight depreciation against the US dollar at the official Nigerian foreign exchange market on Thursday, domiciled on the website of the Central Bank of Nigeria, ending a brief period of consecutive daily gains.
According to daily market data for February 2026, the NFEM rate depreciated from 1,358.28 naira per dollar on Wednesday to 1,366.05 naira per dollar on Thursday, representing a 0.57 per cent decline. Despite this drop, the naira is still stronger than its value at the start of the week, when it opened at 1,390.36 naira per dollar on Monday.
The PUNCH reports that despite the decline, the trend represents a steady strengthening of the local currency after the naira traded above the 1,400/$ level for most of the latter part of January.
On Thursday, the naira traded within a relatively tight band, with the highest rate quoted at 1,370/$ and the lowest at 1,361.80/$, underscoring improved stability in official market pricing.
Analysts say the narrowing gap between the highest and lowest rates in recent sessions suggests reduced volatility at the official market, pointing to better price discovery and improved confidence among authorised dealers. The consistent moderation in the NFEM rate over the past week indicates that demand pressures may be easing, at least temporarily, compared with levels seen earlier in the year.
Meanwhile, at the parallel market, Cowry Assets Management reported that the domestic currency traded flat at 1,431/$, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
However, the analysts at CardinalStone revealed that the naira also declined in the parallel market by 0.14% to close at 1,457.00/$.
The PUNCH reported that analysts projected that the Nigerian currency would remain volatile but broadly stable, with modest appreciation expected in February.
“Robust external reserves and expectations of sustained high crude oil prices should provide support alongside ongoing monetary and fiscal reforms aimed at boosting foreign inflows. Downside risks from external shocks are expected to remain limited in the near term,” said the experts at AIICO Capital in their report for January 2026.
