Naira Strengthens to N1,351/$ as Dollar Supply Boosts Forex Market Stability
- The naira continued to strengthen, supported by a strong supply of dollars from foreign portfolio investors and local participants
- The currency gained more than N20 and appreciated by roughly 2.8% at the official market, signalling improved liquidity and stability
- The positive trend was also reflected in the parallel market, where analysts expect the naira to remain within a stable trading range
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The naira continued its upward movement at the Nigerian Foreign Exchange Market (NFEM), closing at N1,351.02 per dollar on Tuesday, February 10, 2026.
The steady appreciation recorded at the beginning of the month carried on into the latest trading session, reflecting improved performance at the official window.
Source: UGC
Earlier in the week, the local currency strengthened by 86 basis points, equivalent to N11.80, against the US dollar.
This improvement was largely driven by increased dollar supply from Foreign Portfolio Investors (FPIs) and domestic market participants, according to The Sun.
During Monday’s session, the naira traded between N1,360.00/$ and N1,352.50/$ before settling at N1,354.26/$.
Over the past week, the currency advanced by about N20.36 to close at N1,366.19 per dollar. Although it experienced minor pullbacks on February 5 and 6, the overall direction remained positive. Compared to its position on February 2, the naira has appreciated by roughly 2.8% at the official market.
Analysts say the consistent moderation in the NFEM rate reflects better liquidity and growing stability in the regulated foreign exchange segment.
The parallel market also shows stability
Punch reported that the improvement in the naira’s value has also been observed in the parallel market. According to CardinalStone’s latest market report, the currency gained 0.21% to close at N1,447.00 per dollar.
Similarly, Cowry Assets Management reported that the naira remained relatively steady at N1,426 per dollar in the parallel market, indicating limited volatility in that segment.
Market projections suggest the currency may continue its positive run if supply conditions remain stable. AIICO Capital noted that, barring any major change in dollar inflows, the naira is expected to trade within a similar range in the coming days, supported by steady inflows and increasing external reserves.
Afrinvest shares a comparable outlook, stating that the naira is likely to maintain its current range next week unless there is an unexpected negative development in the market.
Overall, improved dollar supply and stable liquidity conditions appear to be supporting the naira’s recent performance across both official and parallel markets.
Source: UGC
Nigeria's external reserves hit $46bn in January 2026
Meanwhile, Legit.ng earlier reported that Nigeria’s external reserves increased by $66 million, based on the figures released by the Central Bank of Nigeria (CBN).
This rise strengthens the country’s foreign exchange position after a prolonged period of strain caused by global economic uncertainties and strong domestic demand for foreign currency.
The boost in reserves coincides with the naira’s best performance in almost two years, further boosting investor confidence that recent policy adjustments and reform measures are starting to have a positive impact.
Source: Legit.ng
