The Nigerian naira maintained relative stability against the US dollar during early trading on Thursday, March 5, 2026, as the foreign exchange market adjusted to recent liquidity injections from the Central Bank.
At the official Nigerian Foreign Exchange Market (NFEM), the naira opened at ₦1,382.87 per dollar. During the morning session, the exchange rate experienced slight movements, reaching a high of ₦1,383.69 before settling around ₦1,383.41 by about 4:00 a.m. WAT.
This performance suggests the currency is currently in a consolidation phase after experiencing mild volatility earlier in the week. Data from the Central Bank of Nigeria shows that the naira closed at ₦1,382.65 per dollar on March 4, with an average rate of ₦1,388.13 for the day. Steady transactions at the NFEM have also helped maintain stability, as authorised dealers continue to meet corporate demand for foreign exchange, especially for import financing.
In the parallel market, the dollar is currently trading between ₦1,390 and ₦1,405, keeping the gap between official and unofficial rates relatively narrow at about 1.5 to 2 percent.
Currency traders in major commercial centres such as Lagos and Abuja say demand remains steady, mainly from individuals seeking foreign exchange for travel and small business activities. However, the absence of panic buying or speculative pressure has prevented any sharp increase in the exchange rate.
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Several factors are helping support the naira’s current position. Nigeria’s foreign reserves remain relatively strong, giving the Central Bank room to manage temporary liquidity pressures. In addition, the Monetary Policy Rate of 26.50 percent continues to attract foreign portfolio investments while limiting excessive liquidity in the local currency market.
Stable crude oil production, currently estimated at around 1.46 million barrels per day, is also contributing to steady foreign exchange inflows, helping offset demand from sectors such as manufacturing and energy.
Market analysts expect the naira to continue trading within the ₦1,380 to ₦1,395 range for the rest of the day as financial markets approach the weekend and investors watch for any new policy signals from fiscal authorities.
