Naira Opens Strong, Markets Anticipate Stability
The naira opened strong on Monday after a previous gain as market confidence remains intact at the official window. Foreign payments and US dollar supply are projected to match as the authority seeks to maintain stability, with a preference for gradual appreciation.
Last week, the Naira maintained its appreciation against the US dollar in the Nigerian Foreign Exchange Market (NFEM) window, supported by continued intervention by the authority.
The exchange rate improved at the official window, and the Naira strengthened by ₦10.78 per USD to close at ₦1,355.41 compared to ₦1,366.19 recorded previously.
Trading data revealed that the naira moved in a range band of ₦1,345.00 and ₦1,360.00 per USD, showing consistent appreciation across all trading sessions.
“We expect near-term Fx market stability to continue supported by rising external reserves, portfolio inflows, and declining speculative demand, among others”, Anchoria Securities Limited said in a note.
Traders anticipate near-term FX market stability to persist underpinned by policy measures and improving market confidence, anchored on improved foreign exchange supply from higher oil receipts and foreign inflows.
The naira was mostly positive at the official window last week, amidst inflows from Foreign Portfolio Investors (FPIs) and supply from local participants.
The naira started the week with strong appreciation, gaining 88 basis points to ₦1,354.26 per US dollar on Monday, and consistently appreciated to ₦1,348.95 per US dollar by midweek.
Analysts said strong foreign investor interest and attractive naira yields are expected to sustain capital inflows and foreign exchange liquidity, supporting near-term currency stability.
The CBN’s external reserves edged up by 1.1% to $47.5bn as of February 10th, 2026, amidst uncertainties in the oil market. The global oil market traded cautiously as geopolitical risk, softer demand expectations, and shifting supply signals pulled prices in opposite directions.
Global oil prices dipped over the week, but held steady on Friday after data showed an overall slowdown in U.S. inflation, recovering from an earlier dip on news that OPEC+ is leaning towards a resumption in production increases.
Brent crude lost 15 cents, or 0.22% w/w, to settle around $67.90 per barrel, while U.S. West Texas Intermediate (WTI) shed 47bps, or 0.74% w/w, to around $5,043.11 per barrel.
Gold prices rose more than 1% over the week as slower-than-expected U.S. inflation data reignited hopes for Federal Reserve rate cuts this year, offsetting concerns from stronger-than-expected jobs data earlier in the week.
Elsewhere, the International Energy Agency (IEA), in its February 2026 Oil Market Report, lowered its forecast for global oil demand growth in 2026 to about 850,000 barrels per day (bpd), down from its January projection of roughly 932,000bpd, a reduction of around 80,000bpd.
The agency now expects total world oil consumption to reach around 104.87 million barrels per day in 2026, compared with its previous estimate of about 104.98 million barrels per day.
Also, reports suggested OPEC+ may resume output increases from April, reinforcing fears of a supply glut, and as a result, the average Brent crude oil price dipped 0.8% w/w to close at $67.50/bbl. CBN Projected to Float OMO Bills Auction as Liquidity Spikes
