The Nigerian Naira traded at approximately ₦1,377 per dollar on Wednesday, March 4, 2026, as activity in the Nigerian Foreign Exchange Market (NFEM) pointed to relatively stable and controlled volatility.
Market data showed the currency moved within a narrow range during the mid-week session, reflecting ongoing price discovery despite improved liquidity conditions in recent weeks.
Official Market Performance (NFEM)
At the official window, the Naira opened at ₦1,379.05 to the U.S. dollar. Early trading pushed the rate to a low of ₦1,376.02 before it recovered slightly.
As of 7:30 a.m. WAT, the currency was quoted at around ₦1,377.04 per dollar.
The Central Bank of Nigeria (CBN) maintained its closing rate near ₦1,384.29, representing a mild depreciation compared to February’s average of ₦1,364.74.
Authorized dealers noted that foreign exchange demand remains firm, particularly for corporate remittances and manufacturing-related imports. However, the CBN’s “willing-buyer, willing-seller” framework has helped prevent the sharp and disorderly fluctuations that characterized previous years.
Parallel Market Trends
In the parallel market, the dollar traded between ₦1,385 and ₦1,395, keeping the gap between the official and informal markets relatively tight at about 1.2 to 1.5 percent.
Currency traders in major commercial centers such as Lagos and Kano reported that the black market is now largely driven by retail demand, including personal travel allowances and small-scale business transactions.
The modest premium suggests improved transparency and a more consistent supply of dollars to Bureau De Change operators. Analysts believe this has reduced speculative hoarding and helped stabilize market expectations.
Economic Drivers and Outlook
Several factors are influencing exchange rate movements this week.
The CBN retained the Monetary Policy Rate at 26.50 percent, following a recent 50-basis-point reduction. Meanwhile, inflation has eased to 15.10 percent, providing investors with a positive real return and lending support to the Naira.
Nigeria’s external reserves remain at healthy levels, giving the apex bank flexibility to intervene when liquidity tightens.
Crude oil production currently stands at 1.46 million barrels per day, ensuring steady foreign exchange inflows and helping offset rising import demand in the first quarter.
Market analysts expect the Naira to trade between ₦1,375 and ₦1,385 at the official window for the remainder of the week. Investors are also watching for new fiscal policy signals — particularly in the energy sector — which could influence longer-term currency stability.
