The naira has strengthened sharply in recent weeks, reaching one of its strongest levels in nearly two years, even as rising foreign portfolio inflows increase the risk of investor profit-taking later in the year, according to a macro update by CardinalStone. The disparity, the report said, reflects “material improvements in the FX market that reduced speculative demand and routed most corporate FX requirements to the official window”. On the foreign portfolio investment side, the analysts warned that continued currency gains could trigger portfolio rebalancing by foreign investors. “Nigeria’s carry trade remains one of the most compelling across EM and frontier markets, continuing to attract sizable foreign portfolio inflows. Such a gain could potentially increase the risk of foreign portfolio exits, especially considering a likely build-up in uncertainties ahead of the general elections,” said the experts.

Source: Punch February 20, 2026 09:49 UTC