The Nigerian naira opened the week on a firm footing, sustaining its recent appreciation at the official foreign exchange window amid improving investor sentiment and strengthening external reserves.
At the Nigerian Foreign Exchange Market (NFEM) window, the local currency maintained upward momentum against the US dollar, supported by sustained central bank intervention and consistent foreign exchange supply.
The naira appreciated by ₦10.78 to close at ₦1,355.41 per dollar, compared with ₦1,366.19 recorded in the prior trading period. Trading data showed the currency fluctuated within a band of ₦1,345.00 to ₦1,360.00 per dollar, reflecting steady demand-supply equilibrium across sessions.
Market Confidence Anchored on Inflows
Analysts at Anchoria Securities Limited projected continued short-term stability in the FX market, citing rising foreign reserves, portfolio investments, and declining speculative demand as key drivers.
Foreign Portfolio Investors (FPIs) remained active at the official window, while local participants contributed to foreign exchange supply, reinforcing liquidity in the market.
The naira opened the week with an 88 basis point gain, settling at ₦1,354.26 per dollar on Monday, before strengthening further to ₦1,348.95 by midweek. Market watchers attribute sustained investor interest to attractive naira-denominated yields and improved confidence in macroeconomic policy coordination.
External Reserves Climb
Nigeria’s external reserves rose by 1.1 percent to $47.5 billion as of February 10, 2026, according to official data. The increase occurred despite ongoing volatility in global oil markets. The oil market traded cautiously during the week, as geopolitical risks, weaker demand projections, and evolving supply expectations exerted mixed pressures on prices.
Brent crude declined marginally by 15 cents, representing a 0.22 percent weekly loss, to close around $67.90 per barrel. U.S. West Texas Intermediate (WTI) fell 0.74 percent week-on-week.
Market sentiment was influenced by reports indicating that OPEC+ may resume phased production increases beginning in April, raising concerns about a potential supply surplus.
Additionally, the International Energy Agency (IEA), in its February 2026 Oil Market Report, revised downward its global oil demand growth forecast for 2026 to approximately 850,000 barrels per day, compared with its January projection of roughly 932,000 barrels per day.
The agency now expects global oil consumption to average about 104.87 million barrels per day in 2026, slightly below its earlier estimate of 104.98 million barrels per day.
Gold Gains on Fed Rate Cut Expectations
Meanwhile, gold prices advanced more than 1 percent over the week, supported by softer-than-expected U.S. inflation data that renewed expectations of potential Federal Reserve rate cuts later this year.
The positive inflation data offset concerns triggered earlier by stronger U.S. labor market figures. Overall, traders expect near-term FX stability to persist, underpinned by steady oil receipts, portfolio inflows, and policy measures designed to maintain orderly market conditions.
