Naira Continues Upward Trajectory, Reaches N1,351 per Dollar
The Nigerian naira has maintained its positive momentum in the foreign exchange market, closing at N1,351.02 per US dollar during Tuesday's trading session on February 10, 2026. This represents a significant strengthening of the local currency, driven primarily by robust dollar inflows from both international and domestic market participants.
Steady Appreciation at Official Market Window
At the Nigerian Foreign Exchange Market (NFEM), the naira demonstrated consistent appreciation throughout the trading week. Earlier sessions saw the currency strengthen by 86 basis points, equivalent to N11.80 against the dollar. Over the past week, the naira advanced by approximately N20.36 to settle at N1,366.19 per dollar before its current position.
Although minor pullbacks occurred on February 5 and 6, the overall trend remained decidedly positive. Compared to its standing on February 2, the naira has appreciated by roughly 2.8% at the official market, reflecting improved liquidity conditions and growing stability in the regulated foreign exchange segment.
Parallel Market Shows Similar Stability Patterns
The positive trend extended beyond the official market to the parallel market segment. According to CardinalStone's latest market report, the naira gained 0.21% to close at N1,447.00 per dollar in unofficial trading channels. Similarly, Cowry Assets Management reported that the currency remained relatively steady at N1,426 per dollar in the parallel market, indicating limited volatility in that segment.
Market analysts attribute this stability across both markets to increased dollar supply from Foreign Portfolio Investors (FPIs) and active participation from domestic market players. During Monday's session, the naira traded between N1,360.00 and N1,352.50 before settling at N1,354.26, demonstrating the currency's resilience.
Market Projections and Economic Context
Financial institutions remain cautiously optimistic about the naira's near-term prospects. AIICO Capital noted that, barring any major disruptions to dollar inflows, the currency is expected to trade within a similar range in coming days, supported by steady inflows and increasing external reserves.
Afrinvest shares this outlook, stating that the naira is likely to maintain its current trading range next week unless unexpected negative developments occur in the market. These projections align with Nigeria's improving economic indicators, particularly the growth in external reserves.
External Reserves Strengthen Economic Position
Concurrent with the naira's appreciation, Nigeria's external reserves increased by $66 million according to Central Bank of Nigeria (CBN) figures released in January 2026. This boost strengthens the country's foreign exchange position after prolonged strain caused by global economic uncertainties and strong domestic demand for foreign currency.
The reserve accumulation coincides with the naira's best performance in nearly two years, further boosting investor confidence that recent policy adjustments and reform measures are beginning to yield positive results. The combined effect of improved dollar supply and stable liquidity conditions appears to be supporting the naira's recent performance across both official and parallel markets.
Market observers will continue monitoring whether these favorable conditions persist, as sustained dollar inflows and prudent monetary policy management remain crucial for maintaining the current stability in Nigeria's foreign exchange landscape.
