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Naira Appreciates Against Global Currencies

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  Published in Business and Finance on Tuesday, February 10th 2026 at 22:36 GMT by legit
      Locales: NIGERIA, UNITED STATES, UNITED KINGDOM, EUROPEAN UNION

Lagos, Nigeria - February 11th, 2026 - The Nigerian Naira is experiencing a period of sustained appreciation against major global currencies, a welcome development for a nation that has long battled currency devaluation and its associated economic challenges. As of today, February 11th, 2026, the Naira is trading at significantly improved rates at both official and parallel exchange markets, signaling a potential turning point in Nigeria's economic landscape.

Current Exchange Rates: A Snapshot

At the official Nigerian Autonomous Foreign Exchange (NAFEX) market, the Naira is currently valued at N1419.1 per US dollar. This represents a substantial gain from rates observed in recent months, indicating a clear upward trend. Concurrently, in the parallel (or black) market, the Naira is being exchanged for N1548 per dollar, also reflecting a notable decrease from previous levels. While a gap remains between official and parallel rates - a common feature of many emerging economies - the narrowing of this gap suggests increased market confidence and reduced speculative pressure.

The Central Bank's Intervention: Clearing the Backlog and Tightening Policy

The primary catalyst behind this positive shift is the aggressive intervention by the Central Bank of Nigeria (CBN). For months, a significant backlog of foreign exchange requests - estimated to be in the billions of dollars - had choked the market, creating artificial scarcity and driving up the Naira's depreciation. The CBN has prioritized clearing this backlog, releasing funds to legitimate importers and addressing pent-up demand.

However, simply releasing funds wasn't enough. The CBN simultaneously implemented a tightening of monetary policy, most notably through consistent increases in benchmark interest rates. This strategic move aims to curb speculative activities, attract foreign portfolio investment, and enhance the overall stability of the exchange rate. Higher interest rates make Naira-denominated assets more attractive to foreign investors seeking yield, increasing demand for the local currency.

Beyond Monetary Policy: Unpacking the Underlying Drivers

While CBN intervention is critical, other factors are also contributing to the Naira's resilience. Increased crude oil production, coupled with relatively stable global oil prices, has boosted Nigeria's foreign exchange earnings. Furthermore, the government's efforts to attract foreign direct investment (FDI) - including streamlining business regulations and offering tax incentives - are starting to yield positive results. Several large-scale infrastructure projects are now underway, financed by both domestic and international investors, further bolstering confidence in the Nigerian economy.

Expert Analysis: Fragile Gains, Sustainable Growth?

Financial analysts are cautiously optimistic about the Naira's performance. Dr. Adebayo Olufemi, a leading economist at Lagos Business School, notes, "The CBN's actions have been effective in the short term, but sustained stability requires more than just interventions. We need to see consistent improvement in economic fundamentals - increased non-oil exports, improved manufacturing output, and a reduction in reliance on imported goods." He cautions that the gains are "fragile" and susceptible to external shocks, such as a sudden drop in oil prices or a global recession.

Another analyst, Ms. Fatima Hassan of Zenith Securities, emphasizes the importance of investor confidence. "The CBN needs to maintain a transparent and predictable policy framework to attract and retain foreign investment. Any perceived policy inconsistency will quickly erode confidence and reverse the recent gains."

Impact on the Nigerian Population: A Mixed Bag

The Naira's appreciation is expected to have a ripple effect throughout the Nigerian economy. A stronger Naira should theoretically lead to lower import costs, reducing inflation and increasing the purchasing power of consumers. Businesses that rely on imported raw materials will also benefit from lower input costs, potentially leading to lower prices for finished goods.

However, the benefits may not be evenly distributed. Exporters, particularly those in the non-oil sector, may face challenges as their products become more expensive for foreign buyers. Furthermore, vulnerable populations, who rely on social safety nets and government assistance, may not immediately feel the positive effects of currency stabilization. The key will be ensuring that the benefits of a stronger Naira are broadly shared and that measures are in place to mitigate any negative consequences for vulnerable groups.

The Road Ahead: Sustaining the Momentum

The CBN has reaffirmed its commitment to maintaining its interventions in the foreign exchange market and pursuing policies aimed at stabilizing the Naira. Looking forward, the CBN is reportedly exploring initiatives to further diversify Nigeria's export base, reduce dependence on crude oil, and promote local production. These long-term strategies are essential for building a more resilient and sustainable economy. The coming months will be critical in determining whether the recent gains in the Naira can be sustained and whether Nigeria is truly on the path to lasting economic stability.