The Nigerian currency, the naira, recorded a noticeable decline against the United States dollar in early trading on Tuesday, March 24, 2026, reflecting mounting pressure in the foreign exchange market.
Data obtained from the Nigerian Foreign Exchange Market (NFEM) showed that the naira weakened by about 2.48 per cent at the start of trading. The dollar opened at an average rate of ₦1,388.38, marking a drop of ₦34.48 when compared to the ₦1,353.90 closing rate recorded at the end of the previous week.
Market activity indicated that the exchange rate briefly surged to as high as ₦1,395.00 during intraday trading before easing slightly, despite recent improvements in volatility management through the Central Bank of Nigeria’s Electronic Foreign Exchange Matching System (EFEMS).
Analysts attribute the renewed pressure on the naira to a spike in demand for foreign exchange, largely driven by end-of-quarter obligations from corporate entities, alongside a temporary slowdown in autonomous dollar inflows into the economy.
At the same time, Nigeria’s external reserves have shown a marginal decline, adding to concerns about forex liquidity. After reaching a 13-year high of $50.45 billion in February 2026, reserves have slipped to $49.78 billion as of mid-March, according to figures released by the Central Bank of Nigeria.
Although global oil prices remain strong—with Nigeria’s Bonny Light crude trading above $100 per barrel—analysts note that domestic production challenges and existing crude-backed financial commitments are limiting the immediate impact of higher oil revenues on foreign exchange availability.
Additionally, persistent capital outflows and rising geopolitical tensions in the Middle East have continued to influence global financial markets, further contributing to volatility in Nigeria’s exchange rate.
Experts warn that unless forex supply improves or demand pressures ease, the naira may remain under strain in the near term.
