Nigerians Rush To Sell Off Dollars as Naira Hits New Exchange Rate

Nigerians are rushing to offload their dollar holdings after the naira rallied sharply, closing the gap between the official and parallel markets to just 0.29% and hitting a three-year high of N1,345 per dollar in the black market.

The latest appreciation marks one of the strongest convergence levels recorded in two years.

New naira to dollar exchange rate

Data from street traders showed the naira strengthened by N25, or 1.86%, from N1,370 per dollar on Wednesday, February 18, to as high as N1,345 on Thursday, February 19, in the parallel market.

The last time the black market traded near N1,310 was in October 2023, according to market data, BusinessDay reports.

At the Nigerian Foreign Exchange Market window, the currency weakened slightly.

The dollar was quoted at N1,341.35, reflecting a depreciation of N3.24 or 0.24% from N1,338.11 recorded the previous day, based on figures published by the Central Bank of Nigeria. The latest movement narrowed the spread between both segments to about N4, a sharp improvement from the N92 gap recorded last week.

The market last witnessed full convergence on July 4, 2024, when the naira traded at N1,520 per dollar in both segments.

Nigeria sells off dollars

Market participants attributed the sharp appreciation in the parallel market to increased dollar supply from speculators who began offloading their holdings after the apex bank reopened access to the official FX window for Bureau De Change operators.

Nigeria’s external reserves continued their steady climb, rising to $48.50 billion as of February 17, 2026, according to data from the central bank, strengthening its capacity to support the currency.

Reacting to the development, Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) said: “Naira supremacy excelent as gap between the NFEM market and Parallel market close down.”

He also told Legit.ng that the decision by the CBN to allow BDCs to buy dollars from the banks will increase dollar liquidity at the critical retail end of the market and provide a source of dollars to the operators.

He stated: “Once again we are happy and delighted with the positive development and congratulate all the successful BDCs nationwide.”

Also, Taiwo Ebenezer, South-West chairman of the ABCON, said the naira’s appreciation followed the announcement that BDCs would resume participation at the NFEM window as directed by the central bank.

Source: Legit