The Naira finished the trading week on a strong note in the foreign exchange (FX) markets, gaining ground against the dollar as Nigeria's external reserves continued on a stable growth path, boosting market confidence.
Data published by the Central Bank of Nigeria (CBN) showed that the Naira, up 1.5 per cent week-on-week on the Nigerian Foreign Exchange Market (NFEM), closed at N1,366.19 per dollar on Friday, the last trading day of the week, compared to N1,386.55 the previous Friday, marking the last trading day of January 2026.
Over the five trading sessions, the local currency posted consecutive gains, strengthening from N1,390.36 per dollar on Monday to N1,366.19 on Friday, the first trading day of the week and month. On a day-to-day basis, the Naira closed almost flat on Thursday at the NFEM, down marginally from N1,366.06 in the previous session.
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In the parallel market, commonly known as the black market, the Naira remained stable throughout the week, standing at N1,450 per dollar, according to data from street traders.
Nigeria's external buffers also continued to improve. CBN data showed that gross foreign reserves increased to $46.91 billion as of February 5, 2026, from $46.70 billion recorded on January 29, 2026. This increase underlines the country's improved ability to meet foreign obligations and provide support to the foreign exchange market.
The economy also recorded higher net foreign exchange inflows in the third quarter of 2025, mainly driven by a reduction in outflows through the banking channel. Net foreign exchange inflows increased to $17.46 billion in the third quarter of 2025, compared to $14.46 billion in the previous quarter. Total foreign exchange inflows declined by 4.17 per cent to $26.27 billion from $27.41 billion in Q2FY25, while total foreign exchange outflow fell sharply by 32.01 per cent to $8.80 billion from $12.94 billion in the previous quarter.
Also read: Naira continues to rise as reserves rise to N1,358.28
Further details show that foreign exchange inflows through the banking system increased slightly by 3.56 per cent to $10.04 billion during the period from $10.02 billion, while sovereign inflows declined by 8.62 per cent to $15.89 billion from $17.39 billion in the previous quarter. On the outflow side, transactions through banks declined by 47.39 per cent to $5.21 billion from $9.82 billion, while outflows through autonomous sources increased by 19.34 per cent to $3.59 billion from $3.01 billion.
As a result, net inflows through banks recorded $5.17 billion, a sharp improvement from $0.09 billion in Q2 2025, while sovereign sources recorded net inflows of $12.30 billion, compared to $14.38 billion in the previous quarter.
