The Dollar to Naira exchange rate remained relatively stable on Wednesday, March 18, 2026, as Nigeria’s foreign exchange market responded to rising global oil prices and a notable increase in external reserves.
At the Nigerian Foreign Exchange Market (NFEM), the Naira showed slight appreciation against the US Dollar.
According to data from the FMDQ Securities Exchange, the Naira traded at an average of ₦1,357.23 per dollar, improving from ₦1,357.77 recorded earlier in the week.
This positive movement continues a recovery trend from last week’s closing rate of ₦1,366.23, signaling growing stability in the official forex window.
Key drivers of Naira stability
Several factors are contributing to the Naira’s improved performance:
Rising External Reserves: The Central Bank of Nigeria (CBN) recently confirmed that Nigeria’s gross external reserves have surpassed $50 billion, boosting investor confidence.
High Oil Prices: Brent crude oil prices have climbed above $100 per barrel, driven by geopolitical tensions in the Middle East, increasing Nigeria’s foreign exchange inflows.
Improved Liquidity: Enhanced dollar supply in the official market has supported exchange rate stability.
Black Market (Parallel Market) Rate
In the parallel market—commonly referred to as the black market—the exchange rate remains higher than the official rate:
- Buying/Selling Range: ₦1,410 – ₦1,415 per dollar
- Location Reports: Lagos and Abuja traders confirm stable pricing
Despite stability, the gap between official and parallel market rates stands at approximately ₦53 to ₦58.
Market Demand and Trends
Bureau De Change (BDC) operators report:
- Continued demand from importers and travelers
- Reduced panic buying, compared to previous months
- Moderate transaction volumes, indicating cautious market participation
Economic Outlook
While Nigeria benefits from an oil-driven forex boost, underlying economic challenges persist:
- Rising operational costs for businesses
- Cash flow constraints in key sectors like power
- Inflationary pressures affecting domestic production
CBN Intervention and Forecast
The Central Bank of Nigeria continues to intervene in the forex market to:
- Ensure price discovery
- Reduce volatility
- Maintain liquidity levels
Short-Term Forecast
Experts suggest that:
- If oil prices remain above $100 per barrel
- And reserves stay above $50 billion
The Naira could see further marginal appreciation in the coming weeks.
Summary: Dollar to Naira Today
Official Rate (NFEM): ₦1,357.23/$
Black Market Rate: ₦1,410 – ₦1,415/$
Trend: Stable with slight appreciation
Outlook: مثبت (Positive), dependent on oil prices and reserves
For daily updates on the Dollar to Naira exchange rate, keep monitoring official data sources and market trends.
