Naira's Surge Against Canadian Dollar Sparks Hope for Cheaper Visa Applications
The Canadian dollar has experienced a significant decline against the Nigerian naira, dropping below the N1,000 exchange rate threshold in the foreign exchange market. This development offers renewed optimism for Nigerians planning to relocate abroad, as it could lead to substantially lower visa fees and reduced proof-of-funds requirements.
Exchange Rate Details and Market Performance
Data from the official Nigerian Foreign Exchange Market (NFEM) window reveals that on Friday, February 20, 2026, the Canadian dollar was trading at N971.12 per CAD for transactions involving Personal Travel Allowance (PTA), school fees, or medical payments through banking channels. This represents a notable adjustment from earlier in February when the exchange rate hovered around N1,050 per Canadian dollar.
The parallel market, commonly referred to as the black market, has mirrored this downward trend. Bureau de Change operators in Lagos confirmed over the weekend that the CAD exchange level has indeed crashed. One trader, identified as Abdullahi, provided specific figures: "Previously, we bought and sold between N1,100 and N1,150. Today, my buying rate is N1,000, and I sell at N1,050 or N1,080, depending on the customer."
Factors Driving the Naira's Appreciation
The naira's robust performance in the official segment is supported by multiple factors:
- Improved transparency in foreign exchange operations
- Rising foreign reserves that have boosted market liquidity
- Sustained intervention strategies by the Central Bank of Nigeria (CBN)
As of Tuesday, February 17, Nigeria's foreign reserves stood at $48.5 billion, marking the highest level in over four years. This substantial reserve provides the CBN with enhanced capacity to defend the naira against unexpected demand pressures and ensure adequate funding availability for importers.
Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), emphasized the importance of continued CBN support: "The CBN should also not abandon the calibration of their intervention sales to the BDCs as the catalytic actor in the foreign exchange market to continue to back the naira strength."
Practical Implications for Nigerian Relocators
The depreciation of the Canadian dollar against the naira carries significant financial benefits for Nigerians considering relocation to Canada:
- Reduced tuition costs: With average Canadian university tuition fees around 20,000 CAD, the naira equivalent drops from over N20 million at an exchange rate of N1,000 per dollar to slightly lower amounts at the new rate.
- Lower proof-of-funds requirements: Financial documentation needed for visa applications becomes less burdensome in naira terms.
- Decreased visa application fees: The right to permanent residency application fee, approximately 2,385 CAD, now translates to a smaller naira amount.
Canada has emerged as a premier destination for Nigerian migrants due to its quality educational institutions, career advancement opportunities, and clear pathways to permanent residency and citizenship. The current exchange rate development makes this dream more financially accessible for many Nigerians.
Expert Analysis and Market Outlook
Financial experts predict that with external reserves maintaining stability and the apex bank continuing its intervention strategy, the Canadian dollar will likely trade below the N1,000 exchange rate in the near term. This sustained performance reflects broader improvements in Nigeria's economic indicators, including rising oil prices that have surpassed budget benchmarks.
The naira's strength against multiple world currencies, particularly the Canadian dollar, represents a positive development in Nigeria's foreign exchange landscape. For prospective migrants, this translates to tangible cost savings across various relocation expenses, from visa applications to educational expenditures.
