The Nigerian naira showed a mix of stability and slight movement against the US dollar in early trading on March 26, 2026, as market forces pulled in different directions.
At the official Nigerian Foreign Exchange Market (NFEM), the naira opened at ₦1,385.46 to the dollar and strengthened slightly to ₦1,384.39 by 10:00 a.m. This modest gain follows a volatile start to the week, where the currency weakened on Monday before recovering some ground over the next two days.
The relative calm in the official market is being supported by increased foreign exchange inflows. Data shows inflows rose significantly in February, driven largely by foreign investors taking advantage of high-yield opportunities in Nigeria. This has helped boost liquidity and support the naira in recent sessions.
In the parallel market, rates remained fairly steady. Traders in major centres like Lagos and Abuja exchanged the dollar at around ₦1,415 for selling and ₦1,405 for buying. The gap between the official and black market rates now stands at about ₦31, slightly wider than earlier in the week but still far lower than the large disparities seen in previous years.
Several key factors continue to influence the exchange rate. Recent reforms by the Central Bank of Nigeria now require diaspora remittances to pass through official banking channels, a move aimed at improving transparency and increasing foreign currency supply.
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At the same time, Nigeria’s external reserves have been under pressure, declining for several consecutive sessions to around $49.6 billion. This drop is linked to global uncertainties, particularly tensions in the Middle East, which have affected investor sentiment.
On the policy side, the Central Bank is maintaining a tight stance to control inflation, which has eased to about 15.1 percent. The goal is to gradually bring inflation down to a target range of 6 to 9 percent.
Looking ahead, analysts expect the naira to trade between ₦1,380 and ₦1,420 in the near term. While falling reserves remain a concern, improvements in foreign inflows and stronger financial buffers, including rising gold reserves, suggest the currency may remain relatively stable in the short run.
