On Wednesday, March 4, 2026, the Nigerian Naira traded with mild and controlled fluctuations against the US dollar, reflecting ongoing price discovery in the Nigerian Foreign Exchange Market (NFEM). The local currency showed slight easing during mid-week trading, coming after a month marked by relative stability and strong liquidity.
At the official market window, the Naira opened at ₦1,379.05 per dollar. Early trades pushed the rate to a low of ₦1,376.02 before it rebounded modestly. By 7:30 a.m. WAT, it was quoted at around ₦1,377.04 per dollar, indicating limited volatility.
The Central Bank of Nigeria (CBN) has kept its closing rate close to ₦1,384.29, representing a slight depreciation compared to February’s average of ₦1,364.74. Despite sustained demand for foreign exchange—especially from manufacturers and companies handling international remittances—the market has remained orderly. Analysts attribute this to the CBN’s “willing-buyer-willing-seller” framework, which has helped prevent the sharp and disorderly swings experienced in previous years.
In the parallel market, the dollar exchanged between ₦1,385 and ₦1,395, closely tracking the official window. The gap between both markets remained narrow, at roughly 1.2 to 1.5 percent. Traders in major commercial centres such as Lagos and Kano say the informal segment now largely caters to personal travel and small business transactions. The tight spread suggests that improved transparency and consistent dollar supply to Bureau De Change operators have reduced speculative pressure and hoarding.
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Several key economic factors continue to shape the Naira’s performance. The CBN recently reduced the Monetary Policy Rate by 50 basis points to 26.50 percent, maintaining a high-yield environment that supports foreign portfolio inflows. With headline inflation easing to 15.10 percent, investors are still enjoying positive real returns, helping to support the currency.
Nigeria’s external reserves also remain strong, giving the apex bank enough room to intervene when liquidity tightens. Meanwhile, crude oil production, steady at about 1.46 million barrels per day, continues to provide a stable source of foreign exchange earnings, offsetting growing import demand as the first quarter advances.
Market analysts expect the Naira to trade within the ₦1,375 to ₦1,385 range in the official window for the rest of the week. Investors are also keeping an eye on potential fiscal policy signals, particularly around structural reforms in the energy sector, which could influence the currency’s longer-term direlction.
