Dollar Falls Slightly as Naira Climbs to ₦1,366/$ in Nigeria’s Forex Market
- The CBN reported that the Naira appreciated against the US dollar on Friday in the official foreign exchange market
- The currency showed steady improvement throughout the week as foreign exchange supply and trading activity strengthened
- Analysts say the gradual appreciation reflects improving stability in Nigeria’s official forex market amid ongoing policy reforms
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigerian currency ended the trading week on a stronger footing on Friday, March 13, 2026, appreciating in the official foreign exchange market to ₦1,366.23 per United States dollar, according to data published by the Central Bank of Nigeria
Figures from the apex bank show that the Naira gained ₦5.27 during Friday’s trading session, representing a 0.3% improvement compared with the ₦1,371.50 per dollar recorded at the close of trading on Thursday.
Source: UGC
The official rate in the Nigerian Foreign Exchange Market (NFEM) is calculated using a volume-weighted average of transactions conducted by authorised dealers, making it the benchmark exchange rate used by regulators and financial institutions.
The week’s performance reflects a gradual strengthening trend for the Naira, supported by sustained market activity and improved supply of foreign exchange within the official market window.
Analysts attribute the relative stability to ongoing reforms by the Central Bank of Nigeria, including measures aimed at improving liquidity, strengthening market transparency, and boosting investor confidence.
At the beginning of the trading week, on Monday, the Naira opened at ₦1,405.62 to the dollar, indicating early pressure on the local currency. By Tuesday, however, the currency showed a modest recovery, closing at ₦1,401.40, reflecting gradual adjustments in supply and demand dynamics in the official market.
The upward momentum continued midweek. On Wednesday, the Naira strengthened further to ₦1,376.19 per dollar, marking a significant improvement from earlier levels and reinforcing expectations of short-term stability in the foreign exchange market.
Financial analysts say the gradual appreciation is occurring amid broader structural changes in Nigeria’s foreign exchange system. Over the past year, policy adjustments by the CBN — including the liberalisation of exchange-rate rules for international money transfer operators and the introduction of a Nigerian Foreign Exchange Code — have been designed to encourage transparency and attract foreign currency inflows.
Recent economic indicators also point to improving fundamentals supporting the currency. Nigeria’s net foreign exchange reserves climbed to about $23.11 billion in 2024, the highest level in three years, reflecting stronger inflows and reduced short-term FX liabilities.
In addition, analysts note that broader reforms in the financial system have begun to stabilise the Naira after a turbulent adjustment period following the 2023 exchange-rate unification policy, which introduced a more market-driven “willing buyer, willing seller” approach to currency trading.
Source: UGC
Economic outlook reports suggest that these policy changes helped the Naira record its first annual appreciation in 13 years in 2025, strengthening by about 6.87% against the dollar as reforms started restoring investor confidence and narrowing the gap between official and parallel market exchange rates.
Market observers say that if the current trend of improved liquidity and stronger reserves continues, the Naira may sustain a more stable trajectory in the official market in the coming months, providing some relief for businesses, importers, and investors that rely on foreign currency transactions.
Source: Legit.ng
