Nigeria Economic Update, Issue 9

Data from the Nigerian Foreign Exchange Market (NFEM) published by the Central Bank of Nigeria (CBN) shows that the exchange rate averaged ₦1,355.53/US$ in February 2026, representing a 4.49 percent month-on-month appreciation from the average of ₦1,416.52/US$ in January 2026 and a 10.73 percent year-on-year improvement from ₦1,500.97/US$ in February 2025. On 17 February 2026, the exchange rate strengthened to ₦1,335.96/US$, its strongest attained since 29 May 2024 (₦1,197.11/US$). The Monetary Policy Committee (MPC), at its 304th meeting, noted the strong performance of Nigeria’s external sector, with rising export earnings and remittance inflows boosting foreign exchange reserves and supporting stability in the foreign exchange market. To further strengthen the Naira and enhance exchange rate stability, Nigeria should bolster foreign reserves by increasing both oil and non-oil export earnings while reducing import dependence. Enhancing oil receipts requires greater investment in production infrastructure and stronger measures to curb oil theft and pipeline vandalism. Strengthening non-oil receipts requires the implementation of export promotion policies, which should include targeted tax incentives for micro, small, and medium-sized enterprises (MSMEs) and the provision of adequate infrastructure. 

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