Naira records 1.5% weekly gain as reserves maintain growth

The naira ended the trading week on a stronger note across the foreign exchange (FX) markets, appreciating against the dollar as Nigeria’s external reserves continued on a steady growth path, reinforcing market confidence.

Data published by the Central Bank of Nigeria (CBN) showed that the naira appreciated by 1.5 percent week-on-week at the Nigerian Foreign Exchange Market (NFEM), closing at N1,366.19 per dollar on Friday, the last trading day of the week, compared with N1,386.55 on the previous Friday, which marked the final trading day of January 2026.

Over the five trading sessions, the local currency posted consistent gains, strengthening from N1,390.36 per dollar on Monday, the first trading day of the week and month, to N1,366.19 on Friday. On a day-on-day basis, the naira closed virtually flat, depreciating marginally by N13 from N1,366.06 on Thursday, at the NFEM in the previous session. Read also: Naira cools after ten-day gains on dollar demand In the parallel market, commonly referred to as the black market, the naira remained stable throughout the week, holding at N1,450 per dollar, according to data from street traders.

Nigeria’s external buffers also continued to improve. Gross external reserves rose to $46.91 billion as of February 5, 2026, from $46.70 billion recorded on January 29, 2026, CBN data showed. The increase underscores the country’s improved capacity to meet foreign obligations and provide support to the FX market.

The economy also recorded a higher net foreign exchange inflow in the third quarter of 2025, largely driven by a reduction in outflows through the banking channel. Net foreign exchange inflow rose to $17.46 billion in Q3, 2025, compared with $14.46 billion in the preceding quarter. Aggregate foreign exchange inflow declined by 4.17 percent to $26.27 billion, from $27.41 billion in the second quarter of 2025, while total foreign exchange outflow fell sharply by 32.01 percent to $8.80 billion, from $12.94 billion in the previous quarter.

Read also: Naira maintains steady rise, hits N1,358.28 as reserves grow

Further details showed that foreign exchange inflow through the banking system increased slightly by 3.56 percent to $10.04 billion during the period, from $10.02 billion, while autonomous inflow declined by 8.62 percent to $15.89 billion, from $17.39 billion in the preceding quarter. On the outflow side, transactions through the Bank decreased significantly by 47.39 percent to $5.21 billion, from $9.82 billion, while outflows through autonomous sources rose by 19.34 percent to $3.59 billion, from $3.01 billion.

As a result, a net inflow of $5.17 billion was recorded through the Bank, a sharp improvement from $0.09 billion in the second quarter of 2025, while autonomous sources recorded a net inflow of $12.30 billion, compared with $14.38 billion in the previous quarter.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.

She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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