By Boluwatife Oshadiya | March 5, 2026
Key Points
- Naira depreciates for the 11th straight trading session to N1,387/$ at the official market
- Intraday rates fluctuate between N1,382 and N1,400 amid limited FX liquidity
- Nigeria’s external reserves rise slightly to $49.693 billion, CBN data shows
Main Story
The Nigerian naira extended its losing streak against the United States dollar on Wednesday, closing at N1,387 per dollar in the official market, marking the 11th consecutive trading session of depreciation amid persistent foreign exchange demand pressures.
Daily foreign exchange data released by the Central Bank of Nigeria (CBN) showed the currency weakened by 20 basis points from the previous trading day, reflecting continued constraints in FX liquidity required to meet international payment obligations.
Intraday trading suggested some easing of pressure, with the spot rate fluctuating between N1,382 and N1,400 per dollar before settling at N1,382.6500, compared with N1,390 recorded on Tuesday.
Activity in the parallel market also reflected sustained currency pressures, where the naira closed at N1,385 per dollar, highlighting ongoing strain across both the regulated official window and the informal foreign exchange segment.
Foreign exchange dynamics remain a central factor shaping Nigeria’s macro-financial environment. Analysts say the FX reforms introduced in 2023, which unified exchange rate windows and improved price discovery mechanisms, have enhanced market transparency but have not fully resolved supply constraints.
Despite the continued depreciation, Nigeria’s gross external reserves increased slightly to $49.693 billion, up from $49.604 billion, according to the latest figures from the apex bank.
Meanwhile, developments in global commodity markets continued to influence investor sentiment. Brent crude traded at $81.13 per barrel around 4 pm GMT, down 24 cents or 0.3 percent, while West Texas Intermediate (WTI) crude fell 27 cents to $74.30 per barrel.
Oil prices experienced volatile trading during the session as geopolitical tensions escalated following U.S. and Israeli strikes against Iran, which disrupted shipping activity in the Strait of Hormuz for a fifth consecutive day — a key route for Middle East energy exports.
Earlier in the session, Brent crude had surged above $84 per barrel, nearing multi-year highs, before retreating after reports that Iranian intelligence officials signalled openness to negotiations with the U.S. Central Intelligence Agency to de-escalate the conflict.
What’s Being Said
“Foreign exchange reforms introduced in 2023 have improved transparency and price discovery in the FX market,” the Central Bank of Nigeria said in recent commentary on the currency framework.
Market analysts say demand pressures remain strong.
“Nigeria’s import dependence and fiscal financing requirements continue to sustain high demand for dollars even as liquidity improves marginally,” said a Lagos-based currency strategist at an investment advisory firm.
What’s Next
- Market participants will closely monitor CBN foreign exchange interventions to stabilise liquidity in the coming trading sessions
- Global oil price volatility linked to Middle East tensions may influence Nigeria’s FX inflows and fiscal outlook
- Investors are awaiting the next Monetary Policy Committee (MPC) meeting, where policymakers may assess currency stability and inflation dynamics
