On March 17, 2026, the Nigerian Naira appreciated to ₦1,355.00 against the US Dollar in the official foreign exchange market, its strongest performance since February 23, 2026.
This gain represents a significant recovery from the previous week’s low of ₦1,425.00, marking a consistent upward trend across five consecutive trading sessions.
Data from the Central Bank of Nigeria (CBN) showed that the currency strengthened from ₦1,363.50 on Friday to the ₦1,355.00 mark by Monday’s close, with intraday trading activity ranging between ₦1,354.00 and ₦1,365.35.
The rally is primarily supported by surging global crude oil prices, with Brent crude trading above $93 per barrel, and in some instances touching $100, due to geopolitical tensions in the Middle East and disruptions in the Strait of Hormuz.
These elevated prices have boosted Nigeria’s foreign exchange earnings and external reserves, which are projected to reach $51.04 billion in 2026.
Furthermore, the 650,000-barrels-per-day Dangote Petroleum Refinery has played a critical role by reducing the national demand for foreign exchange previously used to import refined petroleum products.
While the Naira’s appreciation has been buoyed by improved market liquidity and the CBN’s monetary reforms, the domestic economy faces a paradox of rising energy costs.
The same global oil rally strengthening the currency has forced the Dangote Refinery to increase its ex-depot petrol prices to ₦1,175 per litre as of March 14, 2026, reflecting the higher cost of crude oil and freight.
Despite these inflationary pressures in the energy sector, market analysts at firms like Chapel Hill Denham suggest that the Naira’s momentum remains resilient, supported by high interest rates and increased foreign portfolio inflows.
In the parallel market, the exchange rate has shown similar stability, narrowing the gap with the official window to minimize speculative trading.
The Central Bank has maintained a policy of high interest rates, with the Monetary Policy Rate at 26.50%, to attract “carry trade” investors and sustain the currency’s recovery.
Continued stability for the remainder of the year is expected to hinge on sustained domestic oil production levels and the successful implementation of the government’s Naira-for-crude sale policy to local refineries.
Source: Nairametrics
