The Nigerian naira recorded a stable performance against the US dollar on Thursday, March 19, 2026, as the foreign exchange market continues to reflect the impact of rising global oil prices and a significant increase in the country’s external reserves.
Official Market Trends
At the Nigerian Foreign Exchange Market (NFEM), the naira remained resilient during early trading, with real-time data showing the currency quoted at an average of N1,357.11 per dollar, representing a slight movement from Wednesday’s closing rate. Market turnover stayed strong, supported by recent strategic interventions by the Central Bank of Nigeria (CBN).
The stability in the official market follows the country’s gross external reserves reaching a 13-year high of $50.03 billion. Governor Olayemi Cardoso noted that this reserve build-up provides the apex bank with considerable “firepower” to manage volatility, even as geopolitical tensions in the Middle East push Brent crude prices above $100 per barrel.
Parallel Market Rates
In the parallel market, the exchange rate remained relatively stable. Bureau de change operators in major centres such as Lagos (Ikeja and Lagos Island) and Abuja (Wuse Zone 4) quoted the dollar at N1,410 for buying and N1,415 for selling.
The gap between the official and parallel markets continues to attract attention from analysts. Although it has narrowed significantly since the reforms introduced in mid-2025, a difference of about N53 to N58 still exists due to ongoing demand from small-scale importers and individuals funding international education and travel.
Market Outlook And Analysis
Despite the current stability, the CBN has cautioned about “imported inflation.” In a statement issued on Thursday, the bank warned that while higher oil prices boost the country’s foreign exchange earnings, they also risk increasing energy and transportation costs, which could put pressure on the recently moderated inflation rate of 15.06%.
Financial analysts say the naira is presently in a “consolidation phase.” With the Dangote Refinery now operating at an increased capacity of 700,000 barrels per day, the reduced reliance on foreign exchange for fuel imports is expected to further strengthen the naira towards the end of the second quarter of 2026.