The Nigerian naira closed February 2026 at N1,368.5/$ in the official market, appreciating modestly from its opening rate of N1,384.5/$ at the start of the month, according to data released by the Central Bank of Nigeria (CBN).
Although the currency faced renewed pressure in the final trading week of February, it maintained an overall firmer position compared to January, reflecting gradual stability in the foreign exchange market.
The naira opened the last week of February at N1,353.5/$ on Monday but depreciated steadily across subsequent sessions, closing at N1,368.5/$ by Friday. The consistent weakening during the week highlighted short-term volatility, even as month-on-month data pointed to broader improvement.
Comparatively, the currency had opened January at N1,431/$ and closed that month at N1,391/$. February’s stronger opening at N1,384.5/$ and closing at N1,368.5/$ signals a continuation of gradual recovery.
A major driver of the naira’s relative resilience has been the steady buildup of Nigeria’s external reserves. Gross reserves climbed to approximately $50 billion by the end of February, up from $46.59 billion at the beginning of the month.
CBN Governor, Olayemi Cardoso, confirmed that reserves reached $50.45 billion as of February 16, 2026 — the highest level recorded in 13 years.
The rebuilding phase began in late December 2025 when reserves rose from about $44.8 billion to $45 billion, then considered a six-year high. By January, reserves crossed $46 billion for the first time in eight years and exceeded $47 billion by February 11.
Reports indicate that within the first 22 days of January alone, reserves increased by approximately $509 million, underscoring sustained inflows and improved foreign exchange liquidity conditions.
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Economic analysts say the naira’s February performance reflects improving fundamentals but caution that external risks could still influence short-term movements.
Financial analyst Dr. Bismarck Oladipo noted that reserve growth has significantly improved the CBN’s ability to manage liquidity and defend the currency when necessary.
“The buildup in reserves to over $50 billion gives the apex bank credible intervention capacity. It enhances investor confidence and signals macroeconomic discipline,” he said.
However, he warned that weekly volatility indicates that speculative pressures and external shocks remain relevant.
Investment strategist Aisha Bello added that the decision to cut the MPR while maintaining other tightening measures suggests a calibrated policy shift.
“The rate cut indicates confidence that inflation is on a sustained downward path. But the CBN has maintained tight liquidity controls to prevent excess pressure on the exchange rate,” she explained.
Bello added that sustained foreign portfolio inflows and oil revenue performance will be critical in maintaining exchange rate stability.
While analysts agree that the overall trend is positive, they emphasize that global financial conditions, oil price movements, and geopolitical developments could still shape the naira’s trajectory in the coming months.