The Nigerian Naira showed relative stability against the United States Dollar during the early trading hours of Thursday, March 5, 2026, as the market responded to recent liquidity injections by the Central Bank of Nigeria.
Official market performance
Data from the Nigerian Foreign Exchange Market (NFEM) indicates that the naira opened trading at ₦1,382.87 per dollar. During the morning session, the rate recorded slight movements, reaching a high of ₦1,383.69 before settling around ₦1,383.41 by 4:00 AM WAT.
The figures suggest the currency is currently in a consolidation phase following mild volatility earlier in the week. According to central bank data, the naira closed the previous trading session on March 4 at ₦1,382.65, with a daily average rate of ₦1,388.13.
Stable turnover at the official market has helped sustain the current performance, as authorised dealers continue to meet corporate demand for import financing.
Parallel market trends
In the parallel, or informal, market, the dollar is being traded between ₦1,390 and ₦1,405 per dollar.
The gap between the official and “black market” exchange rates remains relatively modest at around 1.5% to 2.0%.
Currency traders in major financial centres such as Lagos and Abuja report steady retail demand—mainly from travellers and small businesses. However, the absence of speculative pressure has helped prevent a sharp spike in exchange rates.
Key market drivers
Several factors are shaping the dollar-to-naira movement on Thursday:
Foreign reserve buffer: Nigeria’s external reserves remain at multi-year highs, giving the central bank room to address temporary liquidity imbalances.
Interest rate environment: The Monetary Policy Rate currently stands at 26.50%, a level that continues to support the naira by attracting foreign portfolio investment and limiting excess local currency liquidity.
Oil revenue inflows: Stable crude oil production, estimated at about 1.46 million barrels per day, is sustaining foreign exchange inflows and helping offset demand from the manufacturing and energy sectors.
Outlook
Market analysts expect the naira to trade within the ₦1,380 to ₦1,395 range for the remainder of the day as financial markets approach the weekend and investors watch for further policy signals from fiscal authorities.