Nigeria Economic Update, Issue 5

According to data from the Central Bank of Nigeria (CBN), the naira appreciated at the Nigerian Foreign Exchange Market (NFEM), strengthening to ₦1,349.5 per US dollar on February 10, 2026, marking its strongest level in more than a year. This also represents an improvement from the end of January 2026, when the Naira traded around ₦1,391 per US dollar. On a year-on-year basis, the naira strengthened from about ₦1,502 per US dollar on February 10, 2025, indicating an improvement in the exchange rate over the period. The appreciation of the naira suggests relatively improved conditions in the foreign exchange market during the period. This reflects reduced demand pressure on the dollar, supported by inflows from export earnings and foreign portfolio investments. While the recent movement is positive, sustained exchange rate stability will depend on the persistence of these inflows and broader market conditions. To maintain this improvement, policymakers should prioritise measures that support a steady foreign exchange supply, particularly by strengthening export capacities and encouraging stable capital inflows. In addition, continued transparency in FX market operations and timely access to foreign exchange will also be important in reducing uncertainty and supporting confidence in the market over the medium term.

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