By Boluwatife Oshadiya | March 3, 2026
Key Points
Naira depreciates 1.06% to ₦1,378.02/$ at official window
- CBN sells $200 million to moderate FX demand pressures
- Total FX inflows rise to $1.07 billion, led by Foreign Portfolio Investors
Main Story
The naira weakened to ₦1,378.02 per dollar at the official foreign exchange window as foreign payment obligations outpaced available US dollar liquidity, according to data released by the Central Bank of Nigeria.
The local currency depreciated by 1.06 percent from ₦1,363 per dollar, reflecting sustained demand for imports and offshore payments. The decline followed five consecutive trading sessions of pressure last week, despite FX interventions by the apex bank.
The Central Bank sold $200 million into the market to support supply and temper demand-driven volatility. Data compiled by TrustBanc Financial Group showed that in February, the CBN sold $225 million while purchasing $261.80 million, indicating two-way market participation.
Week-on-week, the naira depreciated by ₦2.21 at the official window and by ₦60.00 at the parallel market, closing at ₦1,363.39/$ and ₦1,400.00/$ respectively.
Despite the recent pressure, the naira recorded a 1.70 percent appreciation in February at the official market and a 4.29 percent gain in the parallel segment. Year-to-date, the currency is up 5.31 percent at the official window and 5.00 percent in the parallel market.
According to data from Coronation Merchant Bank’s research arm, total FX inflows into the official window rose to $1.07 billion last week from $648.20 million in the preceding week.
Foreign Portfolio Investors accounted for $544.30 million, representing 50.71 percent of inflows. Exporters contributed $305.2 million (28.43 percent), while non-bank corporates supplied $120.5 million (11.23 percent). Individuals accounted for $7.80 million, and other sources — including foreign direct investments and corporates — contributed $95.50 million.
What’s Being Said
“FX liquidity improved materially last week, but demand remains elevated due to corporate payment cycles and import obligations,” analysts at Coronation Merchant Bank stated in a market note.
“The CBN’s interventions have moderated volatility, but sustained stability depends on structural inflow growth rather than episodic supply boosts,” said Uche Uwaleke, Professor of Capital Market, Nasarawa State University.
What’s Next
- Market participants will watch for further CBN interventions this week
- Corporate demand for FX is expected to remain elevated into early March
- The next Monetary Policy Committee meeting may provide further currency guidance
The Bottom Line: While FX inflows have improved, persistent demand pressures continue to test the naira’s stability. Sustained appreciation will depend less on short-term interventions and more on consistent structural dollar supply.
