By Boluwatife Oshadiya | March 26, 2026
Key Points
- Naira weakens to ₦1,386.70/$ at official market, ₦1,415/$ parallel rate
- FX gap widens to ₦28.30 amid reduced central bank dollar supply
- Stronger U.S. dollar and rising yields intensify pressure on emerging currencies
Main Story
The gap between Nigeria’s official and parallel foreign exchange markets widened to ₦28.30 on Wednesday, reflecting renewed pressure on the naira amid constrained dollar liquidity.
Data from the Central Bank of Nigeria (CBN) showed the official rate weakening to ₦1,386.70 per dollar from ₦1,382.68 in the previous session. Intraday trading saw the currency fluctuate between ₦1,376 and ₦1,391.50, signalling persistent volatility in the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the naira depreciated further to ₦1,415 per dollar, driven largely by reduced foreign exchange interventions. Market participants attributed the widening spread to limited dollar sales to Bureau de Change operators, who typically access up to $150,000 weekly.
Externally, a strengthening U.S. dollar has compounded pressures. The Dollar Index has risen approximately 1.8% in March, supported by higher U.S. interest rates and safe-haven demand linked to geopolitical tensions. The index peaked near 100.50 earlier in the month and remains above key technical support levels.
Analysts note that most G10 currencies have weakened against the dollar in recent weeks, underscoring broader global currency realignments.
What’s Being Said
“Liquidity remains the dominant driver of the naira’s movement across both windows,” said a Lagos-based currency analyst.
“Without sustained FX supply from the central bank, the spread will likely persist or widen further,” the analyst added.
What’s Next
- Market participants will monitor CBN intervention patterns and FX auction activity
- Global dollar strength and U.S. rate outlook remain key external drivers
- Short-term volatility is expected to persist as liquidity conditions tighten
The Bottom Line: Nigeria’s widening FX spread highlights persistent structural imbalances in dollar supply, reinforcing concerns about market efficiency and price discovery across the country’s dual exchange rate system.
