The Nigerian naira opened the new month and second quarter of 2026 on a stable note, maintaining a steady range against the United States dollar. Trading activity on Wednesday, April 1, 2026, reflects a balanced market as the Central Bank of Nigeria (CBN) continues to manage liquidity and inflation pressures.
Official Market Performance (NFEM)
At the Nigerian Foreign Exchange Market (NFEM), the naira recorded slight movements during early trading hours. Data shows the local currency started the session at ₦1,385.27 per dollar.
The relative stability in the official market is largely attributed to the continued use of the Electronic Foreign Exchange Matching System (EFEMS), which has helped reduce the sharp volatility previously experienced. Market participants note that supply from autonomous sources remains consistent, supporting the currency as businesses begin new quarterly financial cycles.
Parallel Market Trends
In the parallel market, the naira remained stable, reflecting the calm seen in the official segment. In key trading centres such as Lagos, Abuja, and Kano, the dollar was sold between ₦1,405 and ₦1,418.
The gap between official and parallel market rates remains narrow, ranging between ₦21 and ₦34. This close margin highlights the effectiveness of current monetary policies, including the integration of licensed Bureau De Change (BDC) operators into the broader forex supply system, which has reduced speculative trading.
Economic Context and Liquidity
As April begins, several factors are shaping the current exchange rate environment:
Quarterly settlements: Although the start of a new quarter typically increases demand as firms settle international obligations, strong system liquidity—exceeding ₦8 trillion at the end of March—has helped prevent sudden rate increases.
External reserves: While reserves declined slightly towards the end of March, Nigeria’s foreign exchange buffers remain solid at about $49.40 billion, sufficient to support the CBN’s stabilisation efforts.
Oil revenue inflows: Continued oil production and favourable global prices for Bonny Light crude are sustaining foreign exchange supply needed to meet domestic demand.
Market Outlook
Financial experts expect the naira to trade within the ₦1,380 to ₦1,420 range in the first week of April. Attention remains on the CBN’s next policy decisions on interest rates, as it maintains a tight stance to sustain declining inflation.
Investors are also watching the conclusion of banking sector recapitalisation, which is expected to enhance the financial system’s capacity to handle large foreign exchange transactions.