By Boluwatife Oshadiya| April 1, 2026
Key Points
- Naira depreciates to ₦1,386.72/$ at official market
- Interbank FX deals drop sharply amid liquidity constraints
- CBN interventions fail to stabilise short-term pressure
Main Story
The naira extended its decline against the US dollar at the official foreign exchange market, closing at ₦1,386.72 per dollar as FX liquidity tightened and interbank trading activity weakened.
Data from the Central Bank of Nigeria (CBN) showed a sharp drop in interbank FX deals, which fell by over 60% within 24 hours, signalling reduced market participation and constrained supply.
The apex bank had injected $95 million into the market last week in an attempt to ease pressure, including a $65 million intervention on Friday. However, demand for foreign currency — driven by import obligations and safe-haven positioning — continued to outweigh supply.
Interbank turnover also declined significantly, dropping to ₦30.95 million from ₦145.29 million recorded earlier in the week, reflecting persistent liquidity shortages in the official window.
At the parallel market, the naira traded relatively stable at around ₦1,420 per dollar, indicating tightening conditions across both official and informal segments.
Global oil market developments added to FX pressures, with Brent crude rising to $119 per barrel following supply disruptions linked to geopolitical tensions in the Middle East, particularly around the Strait of Hormuz.
What’s Being Said
“The persistent gap between FX demand and supply continues to pressure the naira despite intervention efforts,” said a Lagos-based currency analyst.
What’s Next
- The CBN may intensify FX interventions to stabilise the market
- Oil price volatility could impact Nigeria’s FX inflows in the near term
- Further policy adjustments may be considered to manage liquidity
The Bottom Line:
The naira’s continued weakness underscores structural FX supply challenges, suggesting that short-term interventions alone may be insufficient without deeper reforms to boost dollar inflows.
