Dollar to Naira: Naira Maintains Stability at Official, Parallel Markets

Nigeria’s naira held relatively steady against the US dollar in early trading on Thursday, March 5, 2026, as the market absorbed fresh liquidity support and monitored demand across official and informal channels.

At the Nigerian Foreign Exchange Market (NFEM), the naira opened at ₦1,382.87 to the dollar. During the morning session, it moved within a narrow range, touching an intraday high of ₦1,383.69 before trading around ₦1,383.41 by 4:00 a.m. WAT.

The performance points to a period of consolidation after mild volatility earlier in the week. Central Bank of Nigeria data showed the naira closed at ₦1,382.65 on March 4, while the daily average rate stood at ₦1,388.13. Steady turnover in the official market has helped authorised dealers meet corporate demand, particularly for import-related transactions.

In the parallel market, the dollar was quoted between ₦1,390 and ₦1,405, leaving the gap between official and unofficial rates relatively slim at about 1.5% to 2%. Traders in Lagos and Abuja said demand remained firm, driven largely by personal travel needs and small business transactions, but the absence of panic buying or aggressive speculation helped keep rates from moving sharply higher.

The naira’s stability is being supported by a mix of factors. Nigeria’s external reserves remain strong, giving the central bank room to ease short-term liquidity pressure when needed. At the same time, the Monetary Policy Rate, currently at 26.50%, continues to support the currency by maintaining a high-yield environment that can attract foreign portfolio inflows and reduce excess naira liquidity.

Oil receipts are also providing support. Crude production, recently estimated at about 1.46 million barrels per day, has helped sustain foreign exchange inflows and cushion demand pressures from key sectors such as manufacturing and energy.

Analysts say the naira is likely to remain within the ₦1,380 to ₦1,395 band through the rest of the day, as traders position ahead of the weekend and watch for any fresh signals from monetary and fiscal authorities.