The Nigerian Naira closed at N1,387 to the U.S. dollar as of March 31, 2026, reversing some of the gains recorded in February and highlighting continued volatility in the country’s foreign exchange market, according to data from the Central Bank of Nigeria.
Earlier in the year, the Naira had shown signs of gradual appreciation. In February, the currency opened at N1,367/$ before strengthening to N1,340/$ by February 18, offering a fragile optimism of stabilization after months of fluctuating exchange rates.
March, however, presented a more challenging environment. The Naira opened around N1,376/$ but depreciated sharply to N1,425/$ by March 9, its worst close in six weeks, influenced by geopolitical tensions in the Middle East and a stronger U.S. dollar.
Throughout the month, the currency oscillated between N1,362/$ and N1,391/$, finally closing at N1,387/$.
The country’s foreign reserves also fell during the period, dropping from $50.03 billion on March 11 to $49.29 billion by March 30, a decline of approximately $547 million, reflecting persistent pressures on Nigeria’s external position.
Analysts note that the gradual depreciation, rather than a sudden crash, indicates that the Naira is sensitive to ongoing external shocks rather than a single disruptive event.
Sam Ogbaraku, portfolio manager at Kwik Securities Ltd, explained the impact of the Naira’s movement on the domestic economy:
“Importers face higher costs, which could drive inflation and raise the price of goods for consumers. Exporters may benefit as dollar earnings convert into more local currency, improving profitability.”
He further highlighted that persistent volatility complicates business planning, investment decisions, and fiscal policy implementation, stressing that the currency remains closely tied to global oil prices and external economic factors.
CBN Governor Olayemi Cardoso had earlier reported that Nigeria’s gross external reserves rose to $50.45 billion as of February 2026, supported by stronger oil earnings and increased foreign inflows. The central bank continues to implement monetary and foreign-exchange reforms aimed at strengthening market confidence and liquidity.
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The CBN 2026 Macroeconomic Outlook projects that external reserves could reach $51.04 billion by the end of the year, largely buoyed by higher oil revenues.
However, the Naira’s fragile gains and the continuing global economic uncertainties suggest that the domestic currency will remain sensitive to both international and local market dynamics throughout 2026.
Economists warn that while exporters may benefit from a weaker Naira, the broader population could face rising prices for imported goods and essential commodities, further exacerbating Nigeria’s cost-of-living challenges.