The Nigerian Naira opened the second trading session of March with a marginal decline against the US Dollar on Tuesday, 3 March 2026. Real-time figures from the Nigerian Foreign Exchange Market (NFEM) and informal trading desks show the local currency adjusting after a week of steady gains, as high liquidity meets a slight rise in corporate demand for foreign exchange.
Official market performance
In the official NFEM window, the Naira began trading at 1,368.28 per dollar. By mid-morning, the rate showed limited volatility, peaking at 1,370.59 before settling around 1,370.30 at midday. This marks a small depreciation compared with the closing rate of 1,368.50 on 27 February.
The current movement follows a period in which the official mean rate averaged 1,364.74. Dealers noted that while the Central Bank of Nigeria (CBN) continues to support the market, there has been a seasonal increase in demand for foreign exchange as manufacturers begin replenishing inventories for the second quarter.
Parallel market trends
In the parallel market, the US dollar exchanged at rates between 1,375 and 1,382. Traders in major centres such as Lagos and Abuja reported calm conditions, with no evidence of the speculative spikes seen in 2024 and 2025. The relative stability has been attributed to consistent weekly supply to Bureau De Change operators, which has helped meet retail demand for travel and small business needs.
Macroeconomic outlook
Key factors are shaping the exchange rate trend on 3 March:
- Foreign reserve buffer: Nigeria’s external reserves remain a significant support, recently touching a multi-year high. This gives the CBN leverage to smooth out short-term fluctuations.
- Interest rate sentiment: Following the recent 50-basis-point cut in the Monetary Policy Rate (MPR) to 26.50%, the market is navigating a transition phase. While modest, the cut signals a tilt towards growth support, which can sometimes lead to temporary currency softening.
- Trade surplus impact: A robust trade surplus, underpinned by stable oil production of around 1.46 million barrels per day, continues to ensure steady petrodollar inflows, helping to offset demand from the services and manufacturing sectors.
Analysts expect the Naira to trade within the 1,365 to 1,375 range for the remainder of the week as the market absorbs the latest liquidity injections from the central bank.