Naira Depreciates in Parallel Market as Dollar Demand Rises
The United States dollar gained strength against the Nigerian naira in the black market on Monday, February 23, 2026, with traders quoting a new selling rate of N1,375 per dollar. This represents a slight depreciation from the previous closing rate of N1,343 per dollar recorded on Friday, February 20, 2026.
Forex Dealers Confirm Rate Movements for Major Currencies
Abdulahi, a forex dealer who spoke to journalists, confirmed the new exchange rate, attributing it to renewed demand in the market. He stated, "I am currently selling dollars at N1,375/$1 and buying at N1,355/$1. The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market." He added that he anticipates the dollar could return to over N1,400 this week due to increasing requests.
BDC Operators Face Persistent Challenges in Dollar Access
The naira's decline coincides with ongoing difficulties faced by Bureau de Change (BDC) operators in purchasing dollars from commercial banks. Despite a circular from the Central Bank of Nigeria (CBN) allowing licensed BDCs to access foreign exchange through authorised dealers at prevailing market rates, implementation has been slow.
Under the directive, each BDC is permitted to buy up to $150,000 weekly, subject to Know Your Customer (KYC) requirements and due diligence checks. However, an anonymous BDC operator revealed that no transactions have been completed under this new arrangement, citing operational concerns and the lack of fully developed infrastructure for seamless transfers between domiciliary accounts across different banks.
Official Market and Banking Sector Performance
In the Nigerian Foreign Exchange Market (NAFEM), the naira closed against the US dollar on Friday, February 20, at N1,346.32/$1, down from N1,341.35/$1 the previous day. At the GTBank FX desk, the naira weakened by N7 against the dollar to quote N1,356/$1.
The BDC operator noted that while commercial banks appear supportive of the CBN's policy, many are still developing internal processes to align with the directive. BDCs are required to submit bid orders through their banks, which would then access the market on their behalf.
Economic Predictions and Calls for Infrastructure Improvement
Earlier, Aliko Dangote, chairman of the Dangote Group, predicted a strengthening of the naira, suggesting it could reach N1,100 to $1 in 2026. He emphasized the need for incentives and improved infrastructure, particularly in the power sector, to protect local investors and drive industrial growth. Dangote made these comments on Tuesday, February 17, highlighting the importance of stable economic policies for currency recovery.
The situation underscores the volatility in Nigeria's foreign exchange market and the challenges in achieving a unified and stable rate. As traders and operators navigate these dynamics, the impact on the broader economy remains a key concern for stakeholders and policymakers alike.
