Naira Trades Weaker at Parallel Market as Dollar Demand Persists – February 18 2026 Update

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The Nigerian currency continued to face pressure in the informal foreign exchange space as traders in Lagos quoted fresh figures for the United States dollar. Activity in the parallel market, commonly referred to as the black market or Aboki FX, reflected sustained demand for the greenback among buyers seeking quicker transactions outside official banking channels.

As of Tuesday, February 17, 2026, dealers at the Lagos parallel market exchanged the dollar at ₦1,390 for sellers, while buyers were offered ₦1,370 per dollar. These figures were gathered from Bureau De Change operators who monitor fluctuations across key trading hubs in the city. The marginal gap between buying and selling prices underscores the volatility that continues to define the informal forex segment.

Snapshot of the Parallel Market (USD/NGN)

Rather than presenting the figures in the conventional format, here is a quick breakdown of how the dollar traded:

If you are selling dollars: ₦1,390 per $1
If you are purchasing dollars: ₦1,370 per $1

These rates apply specifically within the Lagos parallel market and may vary slightly depending on location and transaction volume.

It is important to reiterate that the Central Bank of Nigeria does not officially recognize transactions conducted in the parallel market. The apex bank has consistently advised individuals and businesses to source foreign exchange through licensed financial institutions. According to regulatory guidance, forex dealings should be routed through banks to ensure transparency and policy compliance.

Official Market Range Provided by CBN

In contrast to the black market figures, the official window recorded a lower pricing band for the dollar. Data from the apex bank showed that the exchange rate fluctuated within a defined range:

Upper band recorded: ₦1,344 per dollar
Lower band recorded: ₦1,318 per dollar

This difference between the official and parallel market rates continues to highlight the persistent gap between regulated supply and street-level demand.

Why the Gap Persists

Market observers note that limited forex liquidity within the formal banking system often drives individuals and small businesses toward the informal segment. While the official window may offer relatively lower rates, accessibility challenges and documentation requirements sometimes push demand to the parallel market.

Additionally, exchange rates are highly fluid. The price at which one buys or sells may differ from the quoted averages due to negotiation margins, transaction size, and sudden shifts in supply. Traders frequently adjust their rates multiple times within a single trading day.

Market Implications and Outlook

The divergence between the CBN window and the parallel market remains a focal point for analysts tracking Nigeria’s monetary stability. A sustained premium in the black market often signals heightened demand pressures or constrained official supply. However, policy interventions, diaspora remittances, and external reserves management could influence future movements.

For individuals planning forex transactions, monitoring both official and parallel market trends remains essential. Comparing rates across channels can help determine the most cost-effective option, while also considering regulatory compliance.

As currency dynamics evolve, stakeholders continue to watch how policy decisions and global economic factors will shape the naira’s trajectory in the coming weeks.