The Nigerian Naira has shown impressive stability against the US Dollar in the official market as the first quarter of 2026 concluded, despite emerging pressures on the nation’s external reserves.
At the
Nigerian Foreign Exchange Market (NFEM)
, the Naira opened trading on March 31, 2026, at ₦1,385.60 per Dollar. By mid-morning, it appreciated slightly to ₦1,383.37, marking a marginal gain and a steady recovery from earlier volatility this month.The stability in the official market is supported by the
Central Bank of Nigeria’s (CBN)
enhanced Electronic Foreign Exchange Matching System (EFEMS), which has improved price discovery. Nevertheless, market players remain cautious as the CBN manages fluctuating capital flows and corporate demands.In the informal market, the Naira is also trading within a narrow range, mirroring the official market’s stability. In Lagos and Abuja, the Dollar is quoted between ₦1,405 and ₦1,420 for selling. The gap between the official and parallel rates remains tight, around ₦22 to ₦35, a milestone in the CBN’s efforts to unify exchange rates.
Market analysts highlight that the recent directive for International Money Transfer Operators (IMTOs) to route remittances through Naira accounts is influencing market sentiment. Although the policy will be fully implemented in May, its announcement has already reduced speculative interest in the parallel market.
While the exchange rate remains stable, Nigeria’s foreign exchange reserves have faced pressure, declining by about $547 million over two weeks to $49.48 billion. This is due to market interventions and debt repayments.
Despite the reserve dip, other economic indicators remain positive:
Inflation
has cooled for 11 months, reaching 15.06% in February, the lowest since late 2020.Oil Revenue
remains strong, with Bonny Light at $103.69 per barrel. Although production is at 1.46 million barrels per day, the high prices support government finances.Policy Changes
include the CBN lifting restrictions on oil companies to repatriate 100% of export proceeds, expected to boost investor confidence.
As Nigeria enters Q2 2026, the focus is on sustaining this stability amid declining reserves. The Naira is expected to trade between ₦1,380 and ₦1,400, pending consistent inflows from services and manufacturing sectors.