The Nigerian naira sustained its positive performance against the United States dollar in the early hours of Friday, April 3, 2026, as the foreign exchange market moved into the final trading session of the week. Activity across both the official and parallel markets indicates a stabilising trend, supported by steady liquidity and targeted policy measures.
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market (NFEM), the naira began the session with a slight gain. Data shows the local currency trading at an average of ₦1,378.26 per dollar by mid-morning, extending the strengthening trend recorded since the start of the second quarter, following a closing rate of ₦1,382.45 the previous day.
The improved stability in the official window is largely attributed to the Central Bank of Nigeria’s upgraded Electronic Foreign Exchange Matching System (EFEMS). The system has improved transparency and enabled better price discovery, reducing the sharp speculative fluctuations typically seen at the beginning of new months. Market participants note that foreign exchange supply from autonomous sources and foreign portfolio investors remains strong, matching demand for corporate transactions.
Parallel Market Trends
In the parallel market, the naira also recorded gains, reflecting improved confidence in the formal sector. Traders in major commercial centres such as Lagos, Abuja and Kano quoted the dollar at about ₦1,400 to ₦1,410 for selling.
The gap between official and parallel market rates remains narrow, currently between ₦22 and ₦32. This convergence marks progress in the apex bank’s exchange rate unification efforts, reducing incentives for arbitrage and encouraging individuals and small businesses to use formal banking channels for foreign exchange transactions.
Economic Drivers and Reserves
Several factors are supporting the naira’s resilience as the week concludes:
External reserves: Nigeria’s foreign exchange reserves remain strong, estimated at about $49.50 billion. This provides a solid buffer against external shocks and enhances the Central Bank’s capacity to manage market volatility.
Oil revenue stability: With global crude prices for Bonny Light holding above $100 per barrel, steady foreign currency inflows continue to support liquidity in the market.
Monetary policy stance: The Central Bank’s tight monetary policy, including elevated interest rates to curb inflation, continues to attract foreign investors to naira-denominated assets, strengthening the currency.
Market Outlook
Analysts expect the naira to close the week within the ₦1,375 to ₦1,390 range in the official market. Although the market remains sensitive to global financial developments and domestic demand patterns, the current balance suggests a more stable environment for importers and investors. Attention is now focused on forthcoming inflation figures and the Central Bank’s next policy decisions, which are expected to shape the currency’s direction for the rest of the quarter.