Naira to US Dollar conversion for March 24, 2026

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The Nigerian Naira faced renewed pressure in the foreign exchange market today, March 24, 2026, as increased demand for the United States Dollar triggered a noticeable depreciation across both the official and parallel market segments.

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Official Market Performance (NFEM)

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Data from the Nigerian Foreign Exchange Market (NFEM) indicates that the Naira weakened by approximately 2.48 percent during the early hours of Tuesday’s trading session. The Dollar was quoted at an opening average of ₦1,388.38, representing a decline of ₦34.48 compared to the ₦1,353.90 recorded at the close of the previous week.

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Despite the recent stability brought about by the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS), intraday volatility saw rates reach as high as ₦1,395.00 before moderating. Market analysts suggest that the sudden spike in demand is linked to a combination of end-of-quarter corporate requirements and a temporary dip in autonomous inflows.

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Parallel Market Trends

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The informal market mirrored the official window’s downward trend, with the Naira shedding value as speculative activity resurfaced. In major trading hubs like Lagos, Kano, and Abuja, bureau de change operators quoted the Dollar between ₦1,415 and ₦1,425 for selling, down from ₦1,400 earlier in the week.

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Interestingly, while both markets saw the Naira lose ground, the gap between the official and parallel rates has narrowed to approximately ₦27. This convergence is a positive byproduct of the CBN’s ongoing unification reforms, though the narrowing spread today was largely driven by the official rate moving closer to the street price rather than an appreciation of the local currency.

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External Reserves and Economic Pressure

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The current market volatility coincides with a slight decline in Nigeria’s external reserves. After reaching a 13-year high of $50.45 billion in February 2026, figures from the apex bank show reserves have moderated to $49.78 billion as of mid-March. This decline is attributed to sustained outflows and heightened geopolitical tensions in the Middle East, which have impacted global financial flows.

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Furthermore, while global oil prices remain favorable—with Bonny Light trading above $100 per barrel—internal production constraints and crude-backed obligations continue to limit the pace at which these high prices translate into immediate foreign exchange liquidity.

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Outlook

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The CBN remains committed to its monetary tightening stance to sustain the disinflationary trend, which saw headline inflation ease to 15.06% in February. Traders and investors are closely watching the apex bank’s next move, as any further intervention in the FX market will be critical to stabilizing the Naira and maintaining the narrow spread between market segments throughout the remainder of the week.

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