The difference in the naira between the official foreign exchange market (FX) and the parallel market tightened again on Friday, falling to 65 naira. This contraction comes at a time when exchange office operators (BDC) are preparing to access new sources of supply in dollars with banks, following the reopening of the foreign exchange market to retailers by the Central Bank of Nigeria.

According to data published by the monetary institution, the gap narrowed by 4.6%, from 92 naira on Wednesday to 65 naira Friday, reflecting increased convergence between the two market segments. On the official Nigerian market (NFEM), the naira depreciated slightly for the second time in the week, giving 1.76 naira. The dollar was trading at 1 355.42 naira on Friday, against 1,353.66 naira on Thursday, a marginal drop of 0.13%.

However, on a weekly basis, the local currency shows a notable gain of 10.77 naira per dollar, closing at 1,355.42 naira against 1,366.19 naira a week earlier, again according to the central bank. On All five trading sessions, the naira appreciated slightly of 1.16 naira compared to the 1,354.26 naira listed on Monday on the NFEM.

On the parallel market, the Nigerian currency also progressed. The dollar was trading at 1,420 naira, compared to 1,430 naira there. Watch, i.e. an appreciation of 10 naira or 0.7%.

According to the Association of Market Dealers financial institutions (FMDA), the naira appreciated by an average of 2.47% in January 2026. “The naira traded around 1,300 naira to the dollar in January, reaching its highest level since the second quarter of 2024. Crude oil prices rose above $70 per barrel toward the end of months, reaching their highest level since September 2025. The performance of Naira was supported by strong oil prices and a weak dollar American towards the end of January,” said analysts at the FMDA.

In addition, Nigeria's external reserves have continued their growth, reaching $47.53 billion on 10 February 2026, according to central bank figures.

Notably, the convergence dynamic has taken place triggered even before BDCs actually received benefits in currencies on the official market. This development suggests that the signals policies and central bank communication alone have, influenced operators' expectations and reduced positions speculative.