Naira Extends Rally, Gains Further Against Dollar in Official and Parallel Markets

By Otobong Gabriel, Abuja 

The Nigerian naira continued its upward climb against the United States dollar in early trading on Thursday, February 5, 2026, building on the steady gains recorded since the start of the week.

The local currency strengthened across both the official and parallel markets, buoyed by improved liquidity, reduced speculation, and ongoing interventions by the Central Bank of Nigeria (CBN).

Official Market Shows Strong Recovery

At the Nigerian Foreign Exchange Market (NFEM), the naira opened the day at ₦1,368.56 per dollar before adjusting slightly to ₦1,371.40 by mid-morning trading.

This represents a notable appreciation from the ₦1,388 level recorded just 24 hours earlier.

Market analysts attribute the sustained recovery to the CBN’s aggressive efforts to stabilise the market through direct liquidity support and improved price discovery. 

The introduction of the Electronic Foreign Exchange Matching System (EFEMS) has also enhanced transparency, helping to tighten bid-ask spreads and reduce volatility in the official window.

In addition, rising external reserves have helped cushion pressure on the currency, providing further support for the naira’s performance.

Parallel Market Narrows the Gap

The improvement was also reflected in the parallel, or informal, market.

Across major commercial centres including Lagos, Abuja, and Kano, the dollar currently trades between ₦1,450 and ₦1,465.

While the black-market rate still sits above the official rate, the gap has narrowed to one of its smallest margins in months — a sign of easing demand pressure.

Bureau De Change operators report that demand remains steady but largely free of the speculative rush that previously drove sharp fluctuations. 

Increased dollar availability from diaspora remittances and small-scale exporters is also helping to stabilise the segment.

Exchange Rate Snapshot (February 5, 2026)

NFEM Opening: ₦1,368.56

NFEM Midday: ₦1,371.40

Parallel Market: ₦1,450 – ₦1,465

Outlook

Analysts remain cautiously optimistic about the naira’s trajectory. If current liquidity levels are maintained and external pressures stay moderate, the currency could test the ₦1,350 mark before the end of the week.

For businesses and consumers involved in foreign transactions, the recent stability offers a welcome break after months of volatility.