Naira Strengthens Below N1,350/$ for First Time Since May 2024
The naira strengthens below N1,350/$ for the first time since May 29, 2024, closing at N1,349.5 per US dollar in the official foreign exchange market on Tuesday. The latest gain signals improving liquidity conditions and rising investor confidence ahead of the Central Bank of Nigeria’s upcoming Monetary Policy Committee (MPC) meeting.
Data from the official market shows the currency improved from N1,354.9/$ on Monday, marking a notable milestone in Nigeria’s ongoing foreign exchange stabilisation efforts.
Official Market Gains as Parallel Market Lags
While the official rate strengthened, the parallel market remained relatively weaker.
- Official rate: N1,349.5/$ (Tuesday) vs N1,354.9/$ (Monday)
- Last time below N1,350: May 29, 2024 (N1,329.65/$)
- Parallel market rate: N1,443.68/$ (Tuesday)
The gap between the two segments has narrowed slightly, reflecting better alignment but persistent pressure in the unofficial market.
What Is Driving the Naira’s Appreciation?
Analysts attribute the improvement to stronger dollar inflows and tighter monetary policy.
According to economist Dr. Joseph Mbada, improved supply conditions in the official window are behind the recent gains.
“The strengthening of the naira below N1,350 per dollar indicates significantly improved liquidity. Better inflows and tighter monetary conditions have helped reduce speculative demand,” he said.
Key factors supporting the naira include:
- Rising external reserves
- Increased oil export earnings
- Stronger remittance inflows
- Portfolio investment inflows
- Improved FX liquidity in the official market
Higher reserves also provide the Central Bank with stronger buffers to manage exchange rate volatility.
All Eyes on the CBN MPC Meeting
The exchange rate movement comes ahead of the CBN’s 304th Monetary Policy Committee meeting scheduled for February 23–24, 2026.
At its last meeting in November 2025, the MPC retained the Monetary Policy Rate (MPR) at 27%, following a 50 basis-point cut in September 2025.
Market participants expect policymakers to assess:
- Inflation trends
- Liquidity conditions
- FX market developments
- External reserve sustainability
The CBN’s tight monetary stance remains focused on curbing inflation and stabilising the naira.
What This Means for Nigeria’s Economy
The naira trading below N1,350/$ is a psychological and technical milestone. If sustained, it could:
- Improve business planning certainty
- Boost investor confidence
- Reduce imported inflation pressures
- Narrow the official-parallel market gap
However, analysts warn that sustained stability will depend on continued FX inflows and disciplined monetary management.
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