Naira Surges After CBN $150,000 Forex Boost
Naira appreciation gained fresh momentum on Wednesday as the local currency strengthened sharply against the US dollar following a major intervention by the Central Bank of Nigeria.
In a decisive move aimed at stabilizing the foreign exchange market and curbing speculation, the CBN authorized licensed Bureau De Change operators to access up to $150,000 weekly from the Nigerian Foreign Exchange Market. The directive, issued on February 11, 2026, represents one of the most aggressive retail liquidity injections in recent months.
The policy, signed by Musa Narkoji, Director of the Trade and Exchange Department, reflects a supply-driven approach designed to meet legitimate retail demand from travelers, students, and small businesses while reducing pressure on the parallel market.
The announcement triggered swift reactions across major trading hubs including Lagos, Abuja, and Kano.
At the official Nigerian Foreign Exchange Market, the Naira opened around 1,353.25 per dollar, maintaining what analysts described as a stable trading corridor supported by improvements in the Electronic Foreign Exchange Matching System.
The parallel market recorded even more dramatic gains. Bureau De Change operators reported buying rates near 1,442 per dollar and selling around 1,452, a significant improvement from levels that hovered close to 1,500 per dollar just weeks earlier.
Notably, the gap between official and parallel market rates narrowed considerably, one of the key reform goals under the Olayemi Cardoso led CBN administration.
To prevent abuse and round-tripping, the CBN introduced strict compliance measures alongside the allocation.
BDC operators are prohibited from holding purchased dollars for more than 24 hours. Any unused funds must be returned to the market within one business day. The regulator also capped profit margins at one percent above the purchase rate from authorized dealers.
Additionally, all transactions must be processed electronically through licensed financial institutions, with cash settlements restricted to a maximum of 25 percent per transaction. These safeguards are intended to enhance transparency and ensure that foreign currency reaches genuine end users instead of speculative traders.
Financial analysts attribute the ongoing Naira appreciation to a combination of improved dollar inflows and moderated demand pressures. Increased market confidence, driven by consistent liquidity injections and tighter oversight, appears to be easing the panic-driven demand that previously fueled depreciation.
By channeling up to $150,000 weekly to thousands of licensed Bureau De Change operators nationwide, the CBN is directly addressing retail dollar scarcity, a major driver of volatility in the informal market.
If sustained through the first quarter of 2026, analysts project that the Naira could consolidate below the 1,300 per dollar threshold before midyear.
A stronger Naira has broader economic implications. Reduced exchange rate volatility could ease the cost of imported goods, moderate inflationary pressures, and provide relief for businesses reliant on foreign inputs.
The latest rally signals a shift from policy rhetoric to practical liquidity management. However, the long-term success of the intervention will depend on consistency, enforcement, and the broader macroeconomic environment.
For now, as the Naira continues to gain ground against the US dollar, attention turns to whether the CBN can maintain this momentum and translate exchange rate stability into wider economic recovery.