Trading in the Nigerian Foreign Exchange Market (NFEM) opened at around ₦1,368.56 per dollar, and by mid-morning the rate adjusted slightly to ₦1,371.40, still reflecting a meaningful gain from levels near ₦1,388 recorded just 24 hours earlier. Analysts attribute the currency’s continued rebound to the Central Bank of Nigeria’s (CBN) active market-matching strategies, which have helped to stabilize supply in the official window. The steady rise in Nigeria’s external reserves has also reinforced market confidence, providing a buffer against external pressures. In addition, traders say the transparency of the Electronic Foreign Exchange Matching System (EFEMS) has contributed to tighter bid-ask spreads and a more orderly market.
Meanwhile, the parallel market has mirrored the official market’s direction, with the dollar trading between ₦1,450 and ₦1,465 across major commercial hubs including Lagos (Ikeja and Island), Abuja, and Kano. Although still trading at a premium to the official rate, the spread has narrowed to one of its smallest margins in months. Bureau De Change operators report that demand has remained steady, but has lacked the speculative intensity that previously fueled volatility. A steady inflow of dollars from diaspora remittances and small-scale export earnings is also supporting supply for individual buyers.
As the week progresses, market watchers remain optimistic about the Naira’s trajectory. If current supply conditions persist in the official window, analysts suggest the currency could test the ₦1,350 support level before the end of Friday’s session. For now, the relative stability offers relief to businesses and consumers engaged in international trade and transactions.
Rates on February 5 (Narrated Summary)
In the official NFEM window, the Naira began trading at ₦1,368.56 per dollar and strengthened slightly to ₦1,371.40 by mid-morning. In the parallel market, the dollar exchanged hands within a range of ₦1,450 to ₦1,465, marking a narrower premium compared to previous weeks as market confidence improves.