The naira strengthened in the parallel market on Wednesday, February 25, 2026, gaining N23.73 against the dollar to close at N1,404.80/$.
The rebound came even as the official window recorded losses, calling attention to current liquidity stress in the formal foreign exchange market.
Data from street traders showed the naira firmed against the dollar in the black market, surprising some dealers who expected further weakness.
The appreciation is one of the strongest single-day recoveries in recent weeks and provided short-term relief after months of volatility.
The currency, however, weakened against other major currencies in the parallel segment. It fell by N50 to close at N1,954.99 per pound, shed N15 against the euro to N1,652/EUR, and lost N10 to trade at N1,047 per Canadian dollar.
Official Window Extends Losses
At the official market operated by the Central Bank of Nigeria, the naira moved in the opposite direction.
The local unit depreciated by N6.13 to close at N1,355.37 per dollar. It also slipped against the euro, losing N4.94 to settle at N1,596.36/EUR compared with N1,591.42 the previous day.
Against the pound sterling, the naira declined by N6.39 to close at N1,828.26/GBP.
Traders linked the stress at the official window to high demand from corporates and manufacturers seeking foreign exchange for imports and other obligations.
Card Transactions Edge Higher
For retail customers using bank channels for international payments, rates also adjusted upward. Guaranty Trust Bank quoted N1,361/$ for international transactions on naira cards, a N6 increase from the prior rate.
Bank rates typically mirror movements at the official window, and Wednesday’s adjustment emphasises the alignment with prevailing market conditions.
Diverging Signals
The gap between the parallel and official markets reveals the uneven flow of dollar supply. Dealers attributed the black market recovery to increased dollar sell-offs by individuals and a pause in speculative buying.
By contrast, demand within the banking system is still elevated, keeping pressure on official rates.
Market participants say investors are watching for further policy signals from the apex bank aimed at narrowing the spread between exchange segments and improving liquidity.
Shettima: Reforms Beginning to Show Impact
Meanwhile, Vice President Kashim Shettima said the federal government’s economic reforms are beginning to yield results.
Speaking at the Progressive Governors Forum’s Renewed Hope Ambassadors Strategic Summit in Abuja on Tuesday, February 24, 2026, Shettima said the naira could have strengthened to around N1,000 per dollar within weeks if not for interventions by the Central Bank to maintain stability.
“Our currency is strong and stable,” he said, adding that recent measures were designed to prevent market distortions and discourage speculative dollar hoarding.
Despite the parallel market rebound, analysts stress that the sustainability of the currency’s stability will depend on improved dollar inflows, stronger reserves and continued policy coordination between fiscal authorities and the central bank.
