Naira Exchange Rate Hits New High Against US Dollar in Official Market
- market-drivenThe naira's good performance against the US dollar continued, and it is now trading below N1,400 in the official market
- Data from the CBN showed the naira gained N17.45, appreciating by 1.3% from Monday’s closing rate
- Nigeria’s external reserves also rose to $46.59 billion, thanks to improved FX supply and no need for CBN support
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira surged to a record high of N1,372.91 against the US dollar in the official foreign exchange (FX) market on Tuesday, February 3.
The appreciation comes without the Central Bank of Nigeria (CBN) FX intervention, marking a shift towards a more market-driven currency movement.
Source: Getty Images
In recent weeks, the apex bank has not contributed to dollar inflows in the market.
Data from the CBN showed the naira gained N17.45, appreciating by 1.3% from Monday’s closing rate of N1,390.36 at the Nigerian Foreign Exchange Market (NFEM). Intraday trading saw the dollar dip as low as N1,360 before closing at N1,367 per dollar.
Similarly, the naira strengthened in the official market, gaining N21.92 against the pound to close at N1,877.59/£1 and N24.76 against the euro to settle at N1,619.76/€1.
At the parallel, or black, market, the naira remained steady at N1,450 per dollar, leaving a gap of N77.09 between official and unofficial rates.
Forex inflow into Nigeria
BusinessDay reports that Foreign portfolio inflows into Nigeria were dominated by fixed-income investors, with bonds accounting for nearly half of total inflows during the period.
Data from Coronation Securities Limited showed foreign portfolio investment in fixed income stood at $0.31 billion, representing 48.24% of total inflows, highlighting sustained offshore appetite for high-yield naira assets amid improved market liquidity.
Equity inflows also increased by $0.01 billion, or 1.16%, while foreign direct investment (FDI) amounted to $0.03 billion, or 4.72%.
Other international investments contributed $0.02 billion, or about 2.97%, reflecting limited long-term capital commitments compared with short-term flows.
On the domestic front, exporters and importers were the largest non-official FX suppliers, providing $0.14 billion, or 21.67% of total inflows.
Individuals accounted for 4.35%, while non-bank corporates contributed 16.29% through inter-company transfers, investment proceeds, and remittances. There were no inflows from the CBN, underscoring the ongoing shift towards a market-driven FX system.
External reserves and market outlook Nigeria’s external reserves, which provide the CBN with the capacity to support the naira, continued to rise, reaching $46.59 billion as of 2 February 2026, according to CBN data.
Analysts at Rhodium Capital Limited said the naira extended its gains at the NFEM, closing at N1,372.91 per dollar, supported by strengthening reserves and improved FX supply conditions.
The firm said.
“With the US dollar showing near-term weakness, liquidity has improved further, enhancing supply visibility and supporting stability in the domestic market."
Nigeria sees 200% growth in diaspora remittances
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has reported a sharp rise in remittances from the Nigerian diaspora, which grew by 200% over the past two months to reach $600 million.
CBN Governor Olayemi Cardoso, speaking yesterday in São Paulo, Brazil, at the Delta State-Brazil Business and Investment Roundtable, noted that monthly inflows had jumped from around $200 million to $600 million, and are projected to hit at least $1 billion by year-end, reflecting a significant improvement in Nigeria’s foreign exchange profile.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
