By Boluwatife Oshadiya | March 10, 2026
Key Points
- Naira strengthens to ₦1,401.40 per dollar at Nigeria’s official FX window
- Currency gains ₦4.22 or 0.3% from Monday’s closing rate of ₦1,405.62
- Recovery follows earlier depreciation amid fluctuating FX inflows
Main Story
Nigeria’s currency strengthened slightly against the United States dollar on Tuesday, closing at ₦1,401.40/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data released by the Central Bank of Nigeria.
The gain represents a ₦4.22 appreciation, or about 0.3 percent, compared with Monday’s closing rate of ₦1,405.62/$, when the local currency opened the trading week on a weaker note.
Tuesday’s marginal recovery followed several days of pressure in the foreign exchange market, during which the naira had recorded a two-week decline at the official window.
Analysts attribute the improvement to better demand-supply dynamics in the FX market, supported by intermittent liquidity injections and growing inflows through the official trading window.
Recent market data shows that foreign exchange inflows into Nigeria’s currency market have been gradually improving, with contributions coming from exporters, foreign portfolio investors, and interventions by the Central Bank of Nigeria.
Despite the latest rebound, market participants say the currency remains sensitive to fluctuations in FX liquidity and broader macroeconomic factors such as oil earnings and capital inflows.
What’s Being Said
“The naira showed mild recovery on Tuesday after opening the week on a weaker note,” said a Lagos-based currency trader familiar with the market.
“Sustained stability will depend largely on improved dollar inflows and stronger investor confidence in Nigeria’s foreign exchange market,” the trader added.
What’s Next
- FX market participants will monitor liquidity levels at the NAFEM window in the coming sessions.
- Analysts are also watching CBN interventions and foreign portfolio inflows for signs of sustained currency stability.
- Global oil price movements remain a key variable affecting Nigeria’s FX supply and fiscal buffers.
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