Nigerians Rush To Sell Off Dollars as Traders Quote New Naira Exchange Rate
- The Nigerian currency strengthened sharply in the parallel market, forcing speculators to sell off dollars
- The official market movement has helped narrow the gap between the official and black market
- Aminu Gwadabe, president of the ABCON, has reacted to the latest performance of the naira
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerians are rushing to offload their dollar holdings after the naira rallied sharply, closing the gap between the official and parallel markets to just 0.29% and hitting a three-year high of N1,345 per dollar in the black market.
The latest appreciation marks one of the strongest convergence levels recorded in two years.
Source: Getty Images
New naira to dollar exchange rate
Data from street traders showed the naira strengthened by N25, or 1.86%, from N1,370 per dollar on Wednesday, February 18 to as high as N1,345 on Thursday, February 19, in the parallel market.
The last time the black market traded near N1,310 was in October 2023, according to market data, BusinessDay reports.
At the Nigerian Foreign Exchange Market window, the currency weakened slightly.
The dollar was quoted at N1,341.35, reflecting a depreciation of N3.24 or 0.24% from N1,338.11 recorded the previous day, based on figures published by the Central Bank of Nigeria.
The latest movement narrowed the spread between both segments to about N4, a sharp improvement from the N92 gap recorded last week.
The market last witnessed full convergence on July 4, 2024, when the naira traded at N1,520 per dollar in both segments.
Source: Getty Images
Nigeria sells off dollars
Market participants attributed the sharp appreciation in the parallel market to increased dollar supply from speculators who began offloading their holdings after the apex bank reopened access to the official FX window for Bureau De Change operators.
Nigeria’s external reserves continued their steady climb, rising to $48.50 billion as of February 17, 2026, according to data from the central bank, strengthening its capacity to support the currency.
Reacting to the development, Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) said:
"Naira supremacy excelent as gap between the NFEM market and Parallel market close down."
He also told Legit.ng that the decision by the CBN to allow BDCs buy dollar from the banks will increase dollar liquidity at the critical retail end of the market and provide source of dollars to the operators.
He stated:
"Once again we are happy and delighted with the positive development and congratulate all the successful BDCs nationwide."
Also, Taiwo Ebenezer, South-West chairman of the ABCON said the naira’s appreciation followed the announcement that BDCs would resume participation at the NFEM window as directed by the central bank.
Despite the renewed optimism, BDC operators have yet to commence dollar purchases from commercial banks one week after the reopening of the market.
CBN authorise dollar sale to BDCs
Legit.ng earlier reported that In a circular signed by Musa Narkoji, director of the Trade and Exchange Department, the apex bank authorised licensed BDCs to purchase foreign exchange from the NFEM through authorised dealer banks at prevailing market rates.
Read also
Banks quote new exchange rate as dollar crashes by N83, naira hits highest level in 2 years
Under the guidelines, authorised dealer banks must complete all Know-Your-Customer and due diligence checks for BDC clients.
Upon satisfactory documentation, banks may sell foreign exchange in line with extant guidelines, subject to a maximum of $150,000 per week per BDC.
Source: Legit.ng
