The Nigerian Naira recorded a significant appreciation against the US dollar across both official and parallel foreign exchange markets on Tuesday, marking a sharp turnaround from the previous day’s decline.
According to data from the Central Bank of Nigeria (CBN), the official exchange rate strengthened to N1,372.91 per dollar, up from N1,390.3622 on Monday. This represents a day-to-day gain of N17.45 for the local currency. In the parallel market, the Naira also firmed, trading at approximately N1,460 per dollar, improved from around N1,470 the day before.
This dual-market recovery follows a depreciation on Monday and stands as one of the largest single-day gains for the Naira since the CBN introduced the Electronic Foreign Exchange Matching System (EFMS) in early October 2024. The system was implemented to enhance transparency and efficiency in forex allocation.
The appreciation coincides with a rise in Nigeria’s external reserves. Data indicates that foreign exchange reserves increased to $46.59 billion as of February 2, 2026, up from $46.28 billion at the end of January. This growth in reserves, which provides the central bank with greater capacity to defend the currency, is viewed as a supportive factor for the Naira’s recent performance.
Analysts note that the consistent reserve accretion has bolstered confidence in the CBN’s ability to manage exchange rate volatility. The combined effect of improved dollar supply and the operational framework of the EFMS appears to be influencing market dynamics.
While the Tuesday gains are notable, the long-term stability of the Naira will depend on sustained reserve growth, continued policy consistency, and broader macroeconomic fundamentals. The CBN’s ongoing interventions and the structural changes in forex distribution remain key indicators to watch for future market trends.
