The British Pound has opened the new trading week with moderate gains against the Nigerian Naira on Monday, February 23, 2026. Data from the Nigerian Foreign Exchange Market (NFEM) and informal trading desks reflect a subtle shift in momentum as market participants digest the latest supply figures from the central bank.
Official Market Performance (NFEM)
In the official window, the Naira opened at 1,817.40 per Pound. Trading activity throughout the early morning sessions saw the currency strengthen slightly, reaching a mid-morning rate of 1,810.65 per Pound by 6:00 AM WAT. This represents a recovery from the opening dip, as the market found a support level near the 1,810 mark.
The current rate marks a notable improvement from earlier in the month when the Pound traded as high as 1,906.29. Analysts attribute this strengthening of the Naira over the last three weeks to the Central Bank of Nigeria’s sustained interventions and the successful clearing of several tranches of foreign exchange backlogs owed to international airlines and service providers.
Parallel Market Trends
In the parallel market, the Pound Sterling is being exchanged at a premium, currently trading between 1,830 and 1,842 per Pound. While the informal sector continues to serve retail demand for personal travel allowances and small-scale imports, the spread between the official and parallel rates remains relatively contained at approximately 1.5%.
Traders in Lagos and Abuja report that while demand for the Sterling remains consistent, there is a lack of panic buying. This suggests that the transparency measures implemented in the NFEM are successfully anchoring expectations and reducing the speculative volatility that historically plagued the Monday morning opening.
Key Factors Driving the Rate
The following factors are currently influencing the Pound-to-Naira exchange rate:
Global Sterling Strength: The British Pound has remained firm against a basket of currencies due to positive employment data from the UK, which has indirectly kept the NGN/GBP pair elevated.
Domestic FX Liquidity: Increased liquidity at the official window has provided Nigerian banks with more capacity to fill “Form M” and “Form A” requests, taking the heat off the informal market.
Monetary Tightening: The CBN’s continued high-interest-rate environment (MPR at 27.00%) has encouraged some level of foreign portfolio investment, helping to stabilize the Naira against major global currencies.
Looking ahead for the rest of the day, financial experts expect the rate to oscillate within a narrow band of 1,805 to 1,818 in the official market, barring any significant shifts in global oil prices or local policy announcements.
Vanguard
