CBN Pushes Naira Down Again, Removes Dollars From Market

The Nigerian naira recorded fresh gains at the official foreign exchange window last week, but the Central Bank of Nigeria (CBN) stepped in to slow the rally by taking dollars out of the market. 

In simple terms, the naira was strengthening too fast, so the CBN bought dollars to reduce dollar supply and cool the pace of appreciation.

What happened in the FX market

Dollar supply improved sharply, and demand pressure stayed relatively calm. Steady inflows from foreign portfolio investors, exporters, and non-bank corporates increased liquidity at the Nigerian Foreign Exchange Market (NFEM). 

With more dollars available and less panic-buying, the naira strengthened. From around ₦1,445 per $1 on December 30, the naira gained roughly ₦87, touching an intra-week low of about ₦1,358 per $1 before the CBN moved in.

The CBN’s “reverse intervention”

Instead of defending the naira from falling (the old pattern), the CBN acted to stop it from rising too quickly. Market watchers say the CBN purchased about $72 million from the FX market as the naira’s gains accelerated.

That move effectively mopped up dollars, reducing supply and pushing the exchange rate slightly higher (meaning the naira weakened a bit).

After the intervention, the naira eased by about ₦7.77 at the official window to close around ₦1,366.06 per $1.

The week still ended positive

Even with that pullback, the naira still finished stronger week-on-week. It closed at about ₦1,366.19 per $1 on Friday, February 6, 2026, up from ₦1,386.55 the previous week’s close. 

Intra-week trading stayed within a band of roughly ₦1,348 to ₦1,396 per dollar, showing tighter control and stronger confidence than earlier periods of wild swings.

Why the CBN didn’t want “too much strength”

A fast-rising naira at the official market can widen the gap with the parallel market if the street rate doesn’t follow. That gap attracts speculation and arbitrage, people rushing to exploit price differences instead of doing real business. 

One key concern in the market is that the official and parallel rates were still far apart (about ₦94 by the estimate cited), so the CBN’s action also signals a push to reduce distortions and keep pricing more aligned.

External reserves jumped — and that matters

Nigeria’s gross external reserves rose by $736.67 million to $46.91 billion. Rising reserves strengthen confidence because they improve the country’s buffer for imports, debt servicing, and FX stability. It also reassures investors that the central bank has more room to manage volatility without panic moves.

The drivers behind the reserves improvement were linked to inflows including oil-related receipts, remittances, and other non-oil sources.

Oil dipped, gold surged the global backdrop

Global commodities sent mixed signals. Brent crude fell 3.21% to $67.60 per barrel (from $70.69), pressured by oversupply concerns and modest demand growth. 

That matters for Nigeria because oil remains a major FX earner, so weaker oil prices can limit future dollar inflows if sustained.

At the same time, gold rallied strongly, climbing to around $4,966.22 per ounce after bouncing from below $4,800 earlier in the week. That shows a classic risk-hedge move: money rotating into safe assets even while oil softens.

What to watch next

If foreign portfolio inflows remain strong, exporters keep selling, and reserves keep climbing, the naira can stay supported at the official window. 

But the CBN has now made its position clear: it wants orderly movement, not a sharp one-way run that re-opens speculation and widens market gaps.