The Pound to naira exchange rate eased slightly as the naira stayed resilient in official and parallel FX markets, supported by CBN reforms

The British Pound Sterling edged lower against the Nigerian naira during early trading on Wednesday, February 4, 2026, as the local currency sustained its recent resilience across major foreign exchange pairs, supported by steady liquidity conditions.

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At the Nigerian Foreign Exchange Market, the Pound to naira exchange rate opened at approximately ₦1,906.43 before softening marginally to around ₦1,903.82 by mid-morning, according to market data.

Analysts attributed the calm movement to sustained liquidity support from the Central Bank of Nigeria and the continued effectiveness of the Electronic Foreign Exchange Matching System, which has enhanced transparency and tightened bid-offer spreads.

Traders said the improved price discovery mechanism has reduced volatility and reinforced confidence among authorised dealers, contributing to the naira’s defensive posture against major currencies.

In the parallel market, the Pound traded within a narrower band of ₦1,985 to ₦2,015 in key commercial centres including Lagos and Abuja.

Although the informal market continues to command a premium over the official window, dealers reported that the spread has remained largely stable since the beginning of February.

Bureau De Change operators noted that demand was driven mainly by tuition payments and international travel, with no evidence of speculative pressure that previously fuelled sharp price swings.

Adequate dollar and Pound supply in the retail market also helped contain intraday volatility, providing a measure of predictability for individuals and businesses engaged in cross-border transactions.

Market watchers said attention will now turn to global oil price movements and any fresh signals from domestic monetary authorities that could influence the Pound’s closing rate.