Nigeria’s currency has shown a level of stability as the first quarter of 2026 comes to an end. The Naira exchange rate remained steady against the US Dollar, even as pressure builds on the country’s external reserves.
At the official market, the Naira opened at ₦1,385.60 per Dollar on March 31. However, it strengthened slightly to ₦1,383.37 by mid-morning trading.
Meanwhile, this stability has been supported by the Central Bank of Nigeria’s improved trading system. The refined Electronic Foreign Exchange Matching System has helped improve transparency in pricing.
In addition, activity in the parallel market shows a similar pattern. Traders in Lagos and Abuja quoted the Dollar between ₦1,405 and ₦1,420.
However, underlying concerns remain despite the steady performance. Nigeria’s external reserves have dropped in recent weeks.
Reports show a decline of about $547 million within two weeks. The reserves fell from $50.03 billion to $49.48 billion.
This drop has been linked to ongoing interventions by the Central Bank. Moreover, external debt payments have also contributed to the pressure. Despite this, key economic indicators still offer some relief.
Inflation has continued to ease for the eleventh straight month. It dropped to 15.06 percent in February, its lowest level in years. Furthermore, global oil prices remain high, supporting government revenue.
Bonny Light crude is currently trading near $103.69 per barrel. Although production is below OPEC targets, the price level provides steady income.
In addition, recent policy changes by the Central Bank are shaping market expectations. International oil companies can now repatriate all export earnings freely.
Meanwhile, new rules for remittances are also influencing the market. International Money Transfer Operators will route funds through Naira accounts. Even before full rollout, the policy has reduced speculative trading. As Nigeria enters the second quarter, attention is shifting to sustainability.
