The Nigerian naira recorded a 2.24% appreciation against the euro on March 18, 2026, closing at ₦1,556.90/€1. This performance reflects a significant recovery from late 2025, when the currency hit a low of ₦1,783.42.
Current market data suggests a consistent strengthening trend, with the naira gaining approximately 3.4% over the past seven days.
Market Performance and Exchange Rate DynamicsExchange rate fluctuations during the third week of March 2026 saw the euro trade between a high of ₦1,613.21 and a daily low of ₦1,553.40.
By the morning of March 19, 2026, the rate remained relatively stable, hovering around ₦1,561.90. This synchronized strength was also visible against other major currencies, with the naira trading near ₦1,350 against the U.S. dollar and showing similar gains against the British pound.
Primary Drivers of AppreciationThe ongoing operations at the Dangote Petroleum Refinery have played a central role in stabilizing the currency. By meeting a substantial portion of domestic fuel demand, the refinery has drastically reduced the need for foreign exchange previously allocated to refined product imports.
Additionally, the Central Bank of Nigeria (CBN) has maintained a high-interest-rate environment, currently at 26.50%, which has successfully attracted foreign portfolio investments.
Fiscal Implications and OutlookImproved liquidity in the Nigerian Foreign Exchange Market (NFEM) and the clearing of long-standing dollar backlogs have bolstered investor confidence.
While the stronger naira helps mitigate inflationary pressures on imported goods, financial analysts note that it may reduce the total naira value of oil revenue available for federation account allocations.
Current projections suggest the currency may maintain this range as long as the current monetary tightenings and industrial output levels persist.
Source: Nairametrics
