The Nigerian Naira demonstrated steady resilience against the US Dollar in early trading on Thursday, March 12, 2026. Data from the Nigerian Foreign Exchange Market (NFEM) and informal trading channels indicate that the local currency is navigating mid-week sessions with relative stability, bolstered by Nigeria’s healthy foreign reserves.
Official Market Performance (NFEM)
In the official NFEM window, the Naira opened at 1,392.03 per dollar in the early hours. Activity throughout the morning pushed the rate to a high of 1,400.07 before settling at around 1,399.57 per dollar by 3:30 AM WAT.
This movement follows a period of consolidation, during which the Central Bank of Nigeria (CBN) cleared significant backlogs, creating a more predictable environment for authorized dealers. Market turnover remains robust, with the “willing-buyer-willing-seller” approach effectively balancing demand from manufacturers and institutional investors fulfilling mid-month obligations.
Parallel Market Trends
The parallel market closely mirrored official rates, reflecting the success of the CBN’s rate harmonization strategies. In the informal sector, the dollar exchanged between 1,408 and 1,418 per dollar.
The gap between official and black-market rates remains narrow, around 1% to 1.3%. Traders in Lagos and Abuja noted steady retail demand for small-scale business and travel needs, with minimal speculative hoarding due to consistent access to foreign exchange through licensed Bureau De Change (BDC) operators.
Economic Drivers and Outlook
Several factors underpin the Naira’s performance this Thursday:
- High Foreign Reserves: Nigeria’s external reserves, recently over 50 billion dollars, give the CBN the leverage to manage temporary currency fluctuations.
- Inflation Control: Headline inflation has eased to 15.10%, supporting the Naira’s real value and boosting investor confidence.
- Interest Rate Policy: The Monetary Policy Rate (MPR) at 26.5% continues to attract foreign investment while limiting excess liquidity.
- Energy Sector Stability: Increased domestic refining has reduced demand for foreign exchange for fuel imports, easing pressure on the currency.
Analysts anticipate that the Naira will remain within a tight range of 1,395 to 1,405 in the official market for the rest of the day. Market participants are now closely monitoring upcoming trade balance reports for indications of the currency’s trajectory for the remainder of the quarter.