Naira Depreciates For Six Straight Days as CBN Mops Up Dollars to Slow Down Local Currency’s Gains
- The Nigerian naira has seen a slight decline after weeks of impressive gains in the forex market
- The Central Bank of Nigeria intervenes, purchasing dollars to stabilize the naira's rapid appreciation
- Market reactions show cautious optimism for the naira, influencing foreign exchange strategies among traders and corporations
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
After weeks of impressive gains, the Nigerian naira has eased off its recent surge in the official foreign exchange market, signalling a shift in momentum on Wednesday, February 25, 2026.
The Central Bank of Nigeria (CBN) stepped in to buy U.S. dollars from the market, slowing the local currency’s rapid appreciation and slightly weakening the naira against the greenback.
Source: Getty Images
Official data shows the naira closed at ₦1,356.11 per dollar, a drop of about 74 kobo from Tuesday’s rate of ₦1,355.37. This was the sixth consecutive trading session in which the currency lost a bit of ground after enjoying a strong run higher.
Why the CBN bought dollars
Nigeria’s apex bank moved to absorb excess dollars from the market, a somewhat unusual step in recent months.
The intent behind the intervention was clear: prevent the naira from strengthening too quickly and destabilising other parts of the financial system.
Officials and analysts worry that a very fast rise in the naira could prompt foreign investors to sell off Nigerian fixed-income assets, which would increase demand for greenbacks and put pressure on reserves.
By buying dollars, the CBN aims to moderate that pace and maintain orderly trading conditions, a report by The Nation says.
Last week, reports suggest the central bank purchased roughly $190 million in foreign currency to reduce excess supply and calibrate the naira’s rise, a strategy that helped narrow the exchange-rate gap between the official and parallel markets.
Market reactions and broader implications
Even though the naira’s firming trend has cooled, many traders and corporations have begun to rethink their foreign exchange strategies as confidence returned to the local currency, according to a report by BusinessDay.
The stronger naira had already led some firms to offload dollar holdings and increase naira exposure, reflecting growing optimism about the currency’s outlook.
Yet this optimism comes with caution. A sudden reversal in investor sentiment or a sharp drop in foreign exchange inflows could quickly put renewed pressure on the naira.
That makes the CBN’s interventions a balancing act: supporting stability without stifling gains.
What this means for Nigerians
For everyday Nigerians, these movements in the foreign exchange market can influence prices of imported goods, the cost of travel, and even inflation.
A stronger naira generally eases the cost of imported products, while volatility can translate into higher prices and uncertainty for businesses and consumers.
By acting decisively to slow the naira’s rally, the CBN appears to be prioritising market stability over short-term gains.
But with global economic factors and local reforms still playing out, the currency’s path in the coming months is likely to remain one of Nigeria’s most-watched economic indicators.
Source: Twitter
Tinubu predicts new exchange rate for naira in 2026
Legit.ng earlier reported that President Bola Tinubu said the naira could strengthen to N1,000 against the United States dollar within weeks.
The president, who made the comments while speaking at the Renewed Hope Ambassadors Summit held in Abuja on Tuesday, February 25, 2026, cited ongoing reforms and recent interventions by the Central Bank of Nigeria to stabilise the foreign exchange market as the reason for the projection.
Tinubu, who was represented by Vice President Kashim Shettima at the event, said his administration’s economic reforms were beginning to yield results.
Source: Legit.ng
