The naira appreciated across segments of the foreign exchange (FX) market during the week, forcing speculative dollar holders to offload positions at a loss as rates eased.
Traders in the parallel market said operators who bought dollars at elevated levels are now selling below cost as the greenback weakens at both official and informal windows. “Some of us bought when the rate was very high. Now that it is dropping, we are losing money,” a street trader said.
At the Nigerian Foreign Exchange Market (NFEM), data from the Central Bank of Nigeria showed the naira appreciated by N9.10 week-on-week, gaining 0.7 percent to close at N1,346.32 per dollar on Friday from N1,355.42 the previous week.
On a five-day basis, the currency was largely flat, rising 0.1 percent or N1.46 from N1,347.78 quoted on Monday. However, it slipped slightly on a day-on-day basis, depreciating by N4.97 or 0.4 percent from N1,341.35 on Thursday to N1,346.32 on Friday.
In the parallel market, the naira recorded stronger gains, appreciating by N80 to close at N1,340 per dollar, up 5.97 percent from N1,420 a week earlier. It gained N40 or 2.98 percent over five trading days from N1,380 quoted on Monday, and strengthened by N5 on Friday from N1,345 on Thursday.
The spread between the official and parallel market rates widened slightly to N6, representing 0.29 percent, compared with N4 recorded a day earlier. On Thursday, the naira had posted its strongest convergence level in two years, with the gap narrowing to 0.29 percent following a rally that pushed the currency to a three-year high of N1,345 per dollar in the black market.
Supporting sentiment, Nigeria’s external reserves rose to $48.50 billion as of February 17, 2026, according to apex bank data, strengthening the CBN’s capacity to intervene when necessary.
Taiwo Ebenezer, South-West Chairman of the Association of Bureaux De Change Operators of Nigeria (ABCON), attributed the recent appreciation to the announcement that bureaux de change (BDCs) would resume participation in the NFEM window in line with CBN directives.
Despite the renewed optimism, BDC operators have yet to begin dollar purchases from commercial banks, one week after the official reopening of the window. A BDC operator said modalities are being finalised, expressing confidence that improved access to official supply would further support the naira and narrow market spreads.
The CBN recently restored access for licensed BDCs to the official FX market to enhance dollar liquidity in the retail segment and ease pressure in the parallel market.
In a February 10 circular, the apex bank permitted duly licensed BDCs to purchase foreign exchange from the NFEM through authorised dealer banks at prevailing rates.
Earlier, in September 2025, the CBN confirmed that 82 BDC operators had been fully licensed under its revised FX regulatory framework to commence operations from November 27.
Under the framework, authorised dealer banks must conduct strict know-your-customer and due diligence checks before selling foreign currency to BDCs for eligible retail transactions, subject to a weekly cap of $150,000 per bureau.
The guidelines also mandate that any FX purchased but not utilised must be resold within 24 hours, while BDCs are barred from holding open positions sourced from the official window. All transactions must be settled through licensed financial institutions, with cash deals capped at 25 percent and third-party settlements prohibited.
The policy marks a recalibration of the CBN’s FX strategy, formally reintegrating BDCs into the market as authorities seek to stabilise the naira, improve price discovery and rebuild confidence in Nigeria’s fragmented foreign exchange system.
