The Naira weakened by about 2.48% in early trading on Tuesday, according to data from the Nigerian Foreign Exchange Market (NFEM).
The US Dollar opened at an average of ₦1,388.38, down ₦34.48 from the ₦1,353.90 recorded at the close of last week.
The decline comes amid trading on the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS). Despite recent stability in intraday rates, the Naira briefly touched ₦1,395.00 before moderating.
Market analysts link the sudden surge in demand to a mix of end-of-quarter corporate obligations and a temporary dip in autonomous foreign inflows.
The current volatility coincides with a slight reduction in Nigeria’s external reserves. After hitting a 13-year high of $50.45 billion in February 2026, reserves have eased to $49.78 billion as of mid-March, according to the CBN.
Although Bonny Light crude is trading above $100 per barrel, internal production constraints and crude-backed obligations continue to limit the speed at which high oil prices translate into foreign exchange liquidity.
Analysts also attribute the Naira’s weakness to sustained capital outflows and rising geopolitical tensions in the Middle East, which have disrupted global financial flows.
