By Seun Ibiyemi
The Nigerian naira showed a mixed performance in foreign exchange markets over the weekend ending Friday, February 20, 2026, as differing dynamics in the official and parallel segments shaped its trajectory.
Data from market sources on Friday showed that the naira appreciated in the parallel (informal) market, strengthening to about ₦1,340 per U.S. dollar its strongest level in nearly two years amid improved liquidity and renewed dollar inflows.
Observers said this reflected narrowing spreads and higher foreign exchange supply, particularly through Bureau De Change channels following policy adjustments by the Central Bank of Nigeria (CBN).
In contrast, the currency weakened slightly in the official Nigerian Foreign Exchange Market (NFEM). Federal data indicated that the naira closed around ₦1,346 to the dollar on Friday, marking a modest depreciation from earlier in the week as dollar demand outpaced supply. Analysts attributed this downward pressure to sustained corporate and individual demand for foreign currency.
Across the week, the official window exhibited volatility, trading within the ₦1,340s range as market participants weighed fresh inflows against ongoing demand for imports and external payments.
Meanwhile, the parallel market’s rally to near two-year highs underscored robust activity outside regulated channels and strong confidence among some traders.
According to international financial reports, the naira’s improved performance has been supported by broader macroeconomic factors, including stronger foreign exchange inflows and targeted central bank dollar sales that have helped narrow the gap between official and informal rates.
Brent crude prices have also trended higher, bolstering foreign reserves and enhancing the central bank’s capacity to intervene in FX markets, a development many analysts say could support further stabilisation efforts in coming weeks.
Economic observers caution, however, that while the weekend’s currency trends offered some optimism, sustained gains will likely depend on continued FX inflows, stable liquidity conditions, and the broader health of Nigeria’s external reserves.
