The Nigerian Naira faced renewed pressure in the foreign exchange market on March 24, 2026, as heightened demand for the United States Dollar led to noticeable depreciation in both official and parallel market segments.
Official Market Performance (NFEM)
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the Naira weakened by about 2.48 percent during early trading on Tuesday. The Dollar opened at an average of ₦1,388.38, down ₦34.48 from the ₦1,353.90 recorded at the close of last week.
Despite the relative stability introduced by the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS), intraday volatility saw rates spike to as high as ₦1,395.00 before moderating. Analysts linked the surge in demand to end-of-quarter corporate needs and a temporary dip in autonomous inflows.
Parallel Market Trends
The parallel market reflected the official market’s decline, with the Naira losing value as speculative activity returned. In major trading hubs such as Lagos, Kano, and Abuja, bureau de change operators quoted the Dollar between ₦1,415 and ₦1,425 for selling, up from ₦1,400 earlier in the week.
While both markets recorded losses for the Naira, the gap between official and parallel rates narrowed to roughly ₦27. Observers noted that this convergence resulted mainly from the official rate moving closer to the street price rather than an actual appreciation of the currency.
External Reserves and Economic Pressure
The depreciation coincides with a slight fall in Nigeria’s external reserves. After hitting a 13-year high of $50.45 billion in February 2026, reserves moderated to $49.78 billion by mid-March, largely due to sustained outflows and geopolitical tensions in the Middle East affecting global financial flows.
Although global oil prices remain strong—with Bonny Light trading above $100 per barrel—domestic production constraints and crude-backed obligations continue to limit how quickly these revenues translate into foreign exchange liquidity.
Outlook
The CBN remains committed to its monetary tightening policies to sustain the disinflationary trend, which saw headline inflation ease to 15.06% in February. Traders and investors are closely monitoring the central bank’s next moves, as further intervention in the FX market will be crucial to stabilising the Naira and maintaining the narrow spread between official and parallel rates for the rest of the week.