By Boluwatife Oshadiya | March 25, 2026
Key Points
- Naira appreciates to ₦1,382.63/$ at official window
- Parallel market weakens to ₦1,400/$
- External reserves fall to $49.61 billion after sustained outflows
Main Story
The naira strengthened against the US dollar at the official foreign exchange market on Tuesday, supported by improved FX supply, even as Nigeria’s external reserves extended their downward trend.
Data from the Central Bank showed the currency appreciated by 0.42% to ₦1,382.63 per dollar at the Nigerian Foreign Exchange Market (NFEM), driven by increased inflows from foreign portfolio investors and non-bank corporates.
In contrast, the parallel market reflected continued pressure, with the naira weakening to approximately ₦1,400 per dollar, highlighting persistent liquidity fragmentation between official and informal segments.
Meanwhile, Nigeria’s gross external reserves declined for the sixth consecutive session, falling to $49.606 billion. Analysts attribute the decline to sustained outflows despite elevated global oil prices, which typically support FX buffers for oil-exporting countries.
Global market sentiment remains volatile amid escalating geopolitical tensions in the Middle East. Oil prices rebounded following renewed hostilities involving Iran and Israel, while uncertainty surrounding US diplomatic efforts has kept investors cautious.
Currency markets globally also reflected mixed movements, with the euro trading near recent highs against the dollar, supported by shifting risk sentiment and ongoing geopolitical developments.
What’s Being Said
“The naira’s appreciation reflects improved short-term FX liquidity, but underlying structural pressures remain,” said a currency analyst at a Lagos-based investment firm.
“The divergence between official and parallel market rates shows that supply constraints are still unresolved,” noted a financial markets strategist.
What’s Next
- The Central Bank is expected to sustain FX interventions to stabilise the naira
- Investors will monitor external reserves for signals on currency sustainability
- Global oil price movements will remain a key driver of FX inflows
The Bottom Line: While short-term FX inflows are supporting the naira, declining reserves and structural imbalances continue to pose downside risks.
