By Boluwatife Oshadiya | March 24, 2026
Key Points
- Naira depreciates 2.55% to ₦1,388/$ amid strong dollar demand
- External reserves decline slightly to $49.79 billion
- Oil and gold prices fall sharply as global risk sentiment shifts
Main Story
The Nigerian naira weakened significantly at the official foreign exchange market on Monday, falling to ₦1,388.38 per dollar as demand for the U.S. currency outpaced available supply.
Data from the Central Bank of Nigeria showed the currency depreciated by 2.55% (₦34.48), reflecting sustained pressure driven by global risk aversion linked to geopolitical tensions in the Middle East.
Trading activity revealed a wide range between ₦1,380 and ₦1,399, with no direct intervention recorded from the apex bank during the session. Analysts at AIICO Capital noted that while demand remained elevated at the open, some stability returned toward the close of trading.
Nigeria’s external reserves also dipped marginally by $43.61 million to $49.79 billion, although still reflecting a year-to-date increase of over 9%.
Meanwhile, global commodity markets saw sharp corrections, with Brent crude falling by over 7% to around $98.94 per barrel and WTI declining more than 10% to $88. Gold prices also dropped sharply as investors reassessed risk positions amid easing geopolitical tensions.
What’s Being Said
“The pressure stemmed from sustained dollar demand, which outweighed supply at the opening,” said analysts at AIICO Capital Limited.
Analysts added that “oil prices are expected to trade lower as tensions ease, while gold may remain under pressure due to shifting risk sentiment.”
What’s Next
- FX market participants will monitor potential CBN intervention to stabilise the naira
- Oil price movements and geopolitical developments will continue to influence FX inflows
- External reserves trajectory remains critical for currency stability outlook
Bottom Line
The Bottom Line: The naira’s latest decline underscores its vulnerability to external shocks and demand imbalances, highlighting the continued dependence on global commodity cycles and foreign exchange inflows.
