The British Pound opened the day stronger against the Nigerian Naira in early market sessions on Friday, February 20, 2026, as local demand for Sterling and global currency movements exerted upward pressure on the local currency. Data from the Nigerian Foreign Exchange Market (NFEM) and parallel trading corridors indicate that the Naira is experiencing slight depreciation, reflecting both international and domestic drivers.

Official Market Performance

In the official foreign exchange window, the Naira started the day at ₦1,807.77 per Pound. Exchange rate fluctuations were modest in the morning, peaking at ₦1,810.40 before stabilizing around ₦1,808.86 per Pound by 7:00 AM WAT.

Traders at the NFEM noted that while liquidity remains adequate, the persistent demand for the Pound for purposes such as international service payments and academic remittances has kept the exchange rate above the ₦1,800 mark. Compared to last week’s closing figures, this represents a slight depreciation of the Naira.

Parallel Market Trends

The informal or parallel market continues to trade the Pound at a premium, with rates ranging from ₦1,825 to ₦1,835 per Pound. Analysts highlight that the spread between official and parallel rates remains relatively narrow—about 1.5% to 2%—as Bureau De Change operators increasingly align pricing with central bank guidance and transparency initiatives.

This relative stability suggests that extreme speculative spikes observed in previous years have been largely mitigated, even as the Naira softens against Sterling.

Key Factors Driving the Pound-Naira Exchange

Several developments are influencing market activity today:

  • Bank of England Policy: Hawkish signals regarding UK interest rates have strengthened the Pound globally, increasing its cost relative to emerging market currencies such as the Naira.
  • Foreign Reserve Cushion: Nigeria’s foreign reserves continue to provide a buffer, enabling the Central Bank of Nigeria to maintain a consistent exchange corridor, despite mild depreciation pressures.
  • Trade and Import Demand: With the first quarter of 2026 underway, Nigerian companies are sourcing more foreign currency to pay for equipment and raw materials from the UK, sustaining demand for Sterling.

Market observers anticipate that the official rate is likely to remain within the ₦1,805–₦1,815 range for the remainder of Friday’s session, unless significant central bank interventions or new global economic data alter current trends.