The British Pound displayed a marginal easing against the Nigerian Naira during the early trading sessions on Friday, February 27, 2026. Data from the Nigerian Foreign Exchange Market (NFEM) and informal trading channels indicate that the local currency is holding its ground, supported by a week of significant policy adjustments and a robust climb in national foreign reserves.
Official Market Performance (NFEM)
In the official window, the Naira opened at approximately 1,828.32 per Pound. Throughout the morning, the exchange rate experienced a subtle appreciation, with the Pound dropping to 1,826.63 by 6:00 AM WAT. This follows a volatile session on Wednesday where the Naira had briefly depreciated to 1,834.96 per Pound.
The current stability in the NFEM is linked to the Central Bank of Nigeria's (CBN) tactical market interventions. Recent reports indicate that the apex bank has been active in managing dollar and sterling liquidity to prevent rapid spikes, even as it transitions into a data-dependent monetary easing cycle following the recent 50-basis-point cut in the benchmark interest rate.
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Parallel Market Trends
In the parallel market, the Pound Sterling is being exchanged at a modest premium, trading within a range of 1,840 to 1,855 per Pound. While the informal sector continues to handle retail demand for travel and personal remittances, the gap between the official and "black market" rates remains relatively tight.
Traders in Lagos and Abuja note that while demand for the Pound remains steady due to ongoing school fee payments and international service contracts, the panic buying seen in earlier years has largely subsided. The convergence of rates is largely credited to the renewed participation of Bureau De Change (BDC) operators in the official supply chain.
Key Factors Influencing the Market
The following macroeconomic drivers are shaping the NGN/GBP trajectory this Friday:
Reserve Accretion: Nigeria's external reserves have reached a 13-year high of 50.45 billion dollars. This massive buffer has increased investor confidence in the CBN's ability to defend the local currency against external shocks.
Monetary Policy Shift: The MPC's decision to reduce interest rates to 26.50% reflects a cooling inflation environment (15.10% in January), providing a more predictable landscape for foreign portfolio investors.
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Global Currency Dynamics: The Pound remains firm globally due to steady UK economic data, but its gains against the Naira are being tempered by Nigeria's improved domestic oil production and reduced demand for foreign refined petroleum.
As the trading week draws to a close, analysts expect the Pound to Naira rate to fluctuate within the 1,820 to 1,835 band in the official window, barring any sudden shifts in global market sentiment over the weekend.
