The Nigerian naira came under fresh pressure on Tuesday, March 24, 2026, as rising demand for the United States dollar led to a noticeable drop in its value across both the official and parallel markets.
At the official window, figures from the Nigerian Foreign Exchange Market showed the naira weakened by about 2.48 per cent in early trading. The dollar opened at an average of ₦1,388.38, down by ₦34.48 from the ₦1,353.90 recorded at the close of last week. During the session, the exchange rate briefly climbed as high as ₦1,395 before easing slightly.
Market watchers say the pressure is largely driven by increased dollar demand from businesses meeting end-of-quarter obligations, along with a temporary slowdown in foreign currency inflows.
A similar trend played out in the parallel market, where the naira also lost ground. In major trading centres such as Lagos, Kano, and Abuja, the dollar was sold between ₦1,415 and ₦1,425, compared to around ₦1,400 earlier in the week.
Despite the depreciation, the gap between the official and parallel market rates has narrowed to about ₦27. Analysts note that while this reflects ongoing foreign exchange reforms, the convergence is mainly due to the official rate moving closer to the street rate rather than any real strengthening of the naira.
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Meanwhile, Nigeria’s external reserves have seen a slight dip. After hitting a 13-year high of $50.45 billion in February, reserves dropped to $49.78 billion by mid-March. This decline has been linked to continued outflows and global uncertainties, particularly tensions in the Middle East.
Although oil prices remain strong, with Bonny Light crude trading above $100 per barrel, production challenges and existing financial commitments have limited the impact of these gains on foreign exchange supply.
Looking ahead, the Central Bank of Nigeria is expected to maintain its tight monetary policy stance to support stability and control inflation, which recently eased to 15.06 per cent. Investors and traders are now watching closely to see if further intervention will be introduced to steady the currency in the coming days.
