The Nigerian naira opened the new month on a relatively steady note against the US dollar on Monday, March 2, 2026, as fresh economic data and stronger foreign reserves helped calm the market.
At the official Nigerian Foreign Exchange Market (NFEM) window, the currency began the week at ₦1,359.58 to the dollar. It inched slightly higher during early trading, touching ₦1,360.00 before settling around ₦1,359.99 by 6:00 a.m. WAT. The movement reflects mild adjustments as the market stabilises following the Central Bank of Nigeria’s recent 50-basis-point cut in the Monetary Policy Rate.
Liquidity in the official market remains firm, supported by improved foreign portfolio inflows. The central bank’s willing-buyer-willing-seller framework has also helped to reduce volatility, preventing the sharp swings that previously unsettled traders.
In the parallel market, the dollar traded between ₦1,365 and ₦1,375 in major cities such as Lagos, Abuja and Kano. Notably, the gap between the official and unofficial rates has narrowed to about one per cent — a significant improvement compared to the wide spreads seen in past years.
Currency dealers say that although demand typically rises at the start of the week — especially from small importers and travellers — steady supply through authorised channels has limited speculative activity. The closer alignment between both markets suggests growing confidence in the system.
Several economic indicators are reinforcing the naira’s current stability. Nigeria’s external reserves climbed to $49.51 billion at the end of February, up from $46.11 billion in January, giving the central bank more room to manage liquidity pressures if they arise.
Read Also;
Naira rises to N1,382/$ in parallel market
Inflation has also continued to ease, slowing for the tenth straight month to 15.10 per cent in January 2026. The steady decline has improved investor sentiment and strengthened confidence in the currency’s value.
Oil production remains stable at about 1.46 million barrels per day, while the average price of Bonny Light crude stood at $71.87 in February. Together, these factors are helping to sustain foreign exchange inflows. In addition, Nigeria recently recorded its largest trade surplus on record, easing concerns about pressure on the naira.
Analysts expect the currency to trade between ₦1,355 and ₦1,365 at the official window this week, as markets continue adjusting to the new interest rate environment and monitor the next steps in the central bank’s stabilisation strategy.
