Stop Saving in Dollars? The New 2026 Reality That’s Emptying Domiciliary Accounts

For years, the unofficial financial mantra in Nigeria was simple: “Save in dollars.” It was the ultimate hedge against a weakening Naira, a digital or physical “safe haven” where your wealth grew simply by sitting still. But as we enter late February 2026, the tides have turned, and the once mighty dollar is no longer the “risk-free” profit machine it used to be. Dollar holds count losses

For ten years, the dollar was Nigeria’s ‘Golden Ticket’, the only asset that never went down. But in a stunning 2026 reversal, that ticket is losing its luster. As the Naira gains ground, the very people who thought they were ‘playing it safe’ in USD are watching their purchasing power evaporate. Is it time to dump the dollar?“

Today, Monday, February 23, 2026, the exchange rate has hit a two-year high for the local currency. In the official window (NFEM), the Naira opened at ₦1,339.18, while parallel market rates have converged significantly, trading between ₦1,350 and ₦1,360. For those who “bought the dip” at ₦1,600 or higher, the sight of the Naira strengthening is a bitter pill to swallow. Experts suggest this shift is part of a broader structural improvement in the FX market driven by the CBN.”

The “Dollar Business” is Bleeding

For many Nigerians, holding dollars wasn’t just about saving for a rainy day; it became a full-blown business. Speculators stocked up on the greenback, waiting for the “inevitable” crash of the Naira to cash out.

However, current market dynamics have disrupted this strategy:

• The Speculator’s Trap: Those who bought dollars at peak rates of ₦1,500 to ₦1,600 in 2024 and 2025 are now watching their paper gains evaporate.
• Offloading Pressure: Reports from street traders in Lagos and Abuja suggest a surge in supply as nervous dollar holders scramble to sell before the Naira gains even more ground.
• Converging Markets: The gap between official and black market rates has shrunk to a mere 0.29%, making it harder for “round-trippers” to find profit margins.

The Double-Edged Sword for Businesses

While a stronger Naira is a victory for the national economy and inflation control (projected to drop to 12.94% this year), it presents a complex challenge for the business community:

Why Is the Naira Gaining?

The recovery isn’t accidental. The Central Bank of Nigeria (CBN) has implemented aggressive reforms that have fundamentally shifted the landscape:

1. Massive Reserve Accretion: External reserves have hit a 13-year high of $48.5 billion, giving the CBN enough “firepower” to stabilize the market.
2. Convergence Policy: By reopening access for Bureau De Change (BDC) operators to the official window, the bank has mopped up speculative demand.
3. Refining Power: The ramp-up of the Dangote Refinery has drastically reduced the demand for dollars to import fuel, removing a massive source of pressure on the currency.

The New Advice: From “Holding” to “Investing”

The era of “lazy gains” from dollar hoarding seems to be coming to an end. Financial experts are now advising a shift in strategy. Instead of parking wealth in foreign currency, savvy investors are looking at:

• Nigerian Equities: The Lagos Stock Exchange is currently a top performer in Africa, with market capitalization surging.

High-Yield Fixed Income: Local Treasury bills and bonds are offering returns that outstrip the “dead” gains of holding idle dollars

As the Naira continues its march toward the ₦1,200 mark, the question for dollar holders is no longer “How high will it go?” but “How much will I lose if I don’t sell now?”

The Trenet