Naira to dollar
Ola Wale
The Naira has continued its downward trend, depreciating further by ₦3.25 against the US dollar at the official foreign exchange market, closing at ₦1,355.41 on February 19, 2026. This depreciation is attributed to various factors, including global financial volatility and declining export earnings..
The African Development Bank (AfDB) has projected a 6% depreciation of the Naira by 2026, citing persistent global financial market uncertainties and weak external positions. Despite recent improvements in Nigeria’s foreign exchange stability, the AfDB highlights issues like misaligned FX policies, fiscal deficits, and low productivity as internal drivers of currency weakness.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the local currency opened at ₦1,346.40 per dollar, representing a slight decline from the previous day’s closing average. Trading data indicates that the market saw an initial push from ₦1,340.00 at the start of the day before settling into its current range.
The parallel market remains sensitive to speculative pressures and the immediate needs of small businesses, with the dollar maintaining its premium. In major commercial centers like Lagos and Abuja, Bureau De Change (BDC) operators are currently quoting the dollar at a buying rate of ₦1,490 and a selling rate ranging between ₦1,505 and ₦1,515 per dollar.
The Central Bank of Nigeria (CBN) has been implementing reforms aimed at improving liquidity and transparency in the foreign exchange market. Recent months have seen relative stability compared to the sharp volatility experienced in earlier reform phases.
The CBN Governor, Olayemi Cardoso, credited the FX stability to recent fiscal and monetary policy reforms, noting that improved investor confidence, rising foreign exchange reserves, and increased transparency at the CBN have contributed to calming the currency market.
The Naira’s depreciation is also influenced by global dollar strength and seasonal payment cycles, with mid-month financial obligations often leading to spikes in FX demand. Analysts warn that sustained depreciation could impact broader economic stability if not addressed through increased FX inflows or policy intervention.
