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The naira appreciated against the United States dollar on the first trading day of February 2026, closing at N1,384.5/$ at the official foreign exchange market.

This is according to data published on the Central Bank of Nigeria’s (CBN) website on Monday.

The improvement marks a modest but notable gain for the local currency as it begins a new month amid signs of improved market alignment and relatively stronger buffers compared with the same period last year.

The naira’s latest performance reflects a slight strengthening from its position at the end of January and highlights a narrowing gap between the official and parallel markets, a key indicator closely monitored by market participants and policymakers.

The official foreign exchange market showed a firmer naira position at the start of February 2026 compared with recent trading sessions and the same period last year.

The narrowing gap between both markets suggests relatively improved price discovery and alignment in the foreign exchange market at the start of the month.

Beyond the day-on-day movement, broader indicators point to a relatively more stable environment compared with the volatility seen in early 2025.

These factors underscore why the narrowing gap, while positive, is being viewed cautiously by market watchers.

Nigeria’s external reserves continue to provide an important buffer for exchange rate management and market confidence.