The Nigerian Naira kicked off April 2026 on a stable footing, trading within a narrow range against the United States Dollar as market conditions reflected improved balance and confidence.
At the official window, the Central Bank of Nigeria continued to guide liquidity and manage inflation pressures, helping the currency maintain stability at the start of the second quarter.
Official Market Performance
At the Nigerian Foreign Exchange Market (NFEM), the Naira opened at ₦1,385.27 per dollar, showing only slight fluctuations in early trading.
This relative calm has been largely attributed to the adoption of the Electronic Foreign Exchange Matching System (EFEMS), which has reduced the sharp volatility previously seen in the market. Steady inflows from autonomous sources have also supported supply, especially as businesses begin implementing new quarterly budgets.
Parallel Market Trends
In the parallel market, the Naira mirrored the stability seen in the official segment. Across major cities like Lagos, Abuja, and Kano, the dollar traded between ₦1,405 and ₦1,418.
The gap between official and parallel market rates remained relatively tight, ranging between ₦21 and ₦34. This narrowing spread reflects ongoing efforts to integrate licensed Bureau De Change operators into the formal FX framework, reducing speculative trading.
Economic Drivers
Several factors are shaping the current exchange rate environment:
- Strong Liquidity: System liquidity, which exceeded ₦8 trillion at the end of March, has helped absorb early-quarter demand pressures.
- External Reserves: Nigeria’s reserves remain solid at about $49.40 billion, providing support for market interventions.
- Oil Earnings: Continued inflows from crude oil exports, particularly Bonny Light, are sustaining foreign exchange availability.
Market Outlook
Analysts expect the Naira to trade within the ₦1,380 to ₦1,420 range in the first week of April. Attention remains on the CBN’s next interest rate decisions, as it maintains a tight monetary stance to curb inflation.
Investors are also watching developments around banking sector recapitalisation, which is expected to strengthen the financial system’s capacity to handle large foreign exchange flows and support long-term stability.
