Nigerian Naira Strengthens Against US Dollar to Hit Two-Year High as Central Bank of Nigeria Boosts Retail Liquidity Across Official Market

On Thursday, February 12, 2026, the Nigerian Naira reached its strongest level against the US dollar in two years, signaling renewed confidence in the local currency.

This milestone comes as a result of targeted policy interventions by the Central Bank of Nigeria (CBN) aimed at boosting liquidity in the retail segment and narrowing the long-standing gap between official and parallel market rates.

Strength in the Official Foreign Exchange Market

In the Nigerian Foreign Exchange Market (NFEM), the Naira opened the day around 1,351 per dollar, following a strong performance the previous day where it touched 1,348.95.

By mid-morning, the currency had strengthened further to 1,354.01 per dollar.

Analysts point to the CBN’s strategic reopening of the “dollar tap” for licensed Bureau De Change (BDC) operators as a key factor behind this uptick.

Under this policy, BDCs are now allowed to purchase up to 150,000 dollars per week, a move that has eased shortages in the retail foreign exchange market.

This has improved both price transparency and liquidity, helping the Naira achieve levels not seen since early 2024.

Parallel Market Sees Stabilization

The parallel, or “black market,” exchange rate has also responded to the CBN’s interventions.

In major commercial centres such as Lagos and Abuja, the Naira traded steadily between 1,430 and 1,440 per dollar.

Although there remains a spread of roughly 90 Naira between official and parallel rates, the gap has stabilized as the speculative pressure that often drives up informal market prices begins to ease.

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Traders note that BDCs’ direct involvement in supplying dollars for personal travel and small-scale business needs has reduced panic buying and calmed the market.

Context and Market Reactions

This strengthening of the Naira reflects broader confidence in Nigeria’s economic stability.

External reserves remain robust, supporting the currency, while the CBN’s retail interventions show that authorities are actively managing liquidity pressures.

Currency traders and investors are keeping a close eye on whether this momentum can be sustained below the 1,360 threshold for the rest of the month.

If it does, it could reinforce the Naira’s credibility, improve investor sentiment, and even reduce inflationary pressure linked to imported goods.

What’s Next?

Market watchers are focused on the sustainability of the CBN’s liquidity measures.

If the central bank continues to supply dollars effectively to BDCs while maintaining overall foreign reserve stability, the Naira could maintain its current strength or even appreciate further.

Conversely, any disruption in the retail dollar supply or external shocks could widen the spread again.

Investors, businesses, and consumers alike are expected to closely monitor end-of-week rates, which will provide a clearer picture of the Naira’s trajectory for the remainder of February.

Summary

The Nigerian Naira hit a two-year high against the US dollar in the official market on February 12, 2026, trading at 1,354.01 per dollar.

This follows the CBN’s policy allowing licensed BDCs to purchase up to 150,000 dollars weekly, easing retail liquidity pressures and stabilizing the parallel market.

While a spread of about 90 Naira still exists between official and street rates, the gap has narrowed as speculative pressures ease.

With strong external reserves backing the currency, the outlook for the Naira remains cautiously bullish, though traders will closely watch sustainability over the coming weeks.

Official Rates Summary – February 12, 2026

• NFEM Opening: 1,351.65

• NFEM Current: 1,354.01

• Parallel Market Average: 1,430 – 1,440