Naira Weakens to N1,387 as Reserves Drop to $49.29 Billion

As of Tuesday, the Naira has depreciated slightly to N1,387 per dollar, compared to N1,386.75 in the previous session, according to data from the Central Bank of Nigeria (CBN). This marginal decline comes amid a decrease in Nigeria's external reserves, which fell to $49.29 billion at the end of March 2026.

The situation reflects ongoing pressures in the foreign exchange market, despite recent reforms by the CBN aimed at adopting a market-driven exchange rate system initiated in mid-2023. These reforms are intended to improve transparency and narrow the gap between official and parallel market rates.

The total turnover in the market recorded was $30.95 million across 44 deals, indicating moderate trading volume. The Naira's current movement is set against a backdrop of stable global currency markets, with the U.S. dollar maintaining its position amid geopolitical tensions, particularly in the Middle East.

The CBN's reserves are critical for supporting the Naira and meeting external obligations, with future expansions linked to domestic refinements, notably Dangote Refinery's planned capacity increase to 700,000 barrels per day by 2025.