Naira holds gains as rising oil prices support FX market

For instance, the CBN has devalued the naira against the dollar to push towards a single foreign exchange system for the local currency. In May, the apex bank adopted the Investors and Exporter's (I&E) exchange window, which has averaged N410.25/$1 as against the formerly fixed rate of N379/$1.

The naira strengthened against the dollar on Monday in the official foreign exchange market (FX), supported by rising global oil prices and modest portfolio inflows into Nigeria.

Data published by the Central Bank of Nigeria (CBN) showed the currency appreciated by N8.46 to close at N1,357.77 per dollar on Monday at the Nigerian Foreign Exchange Market (NFEM), representing a 0.62 percent gain from N1,366.23 quoted on Friday.

In the parallel market, commonly referred to as the black market, the naira held steady at N1,410 per dollar. The gap between the official and parallel market rates widened to N63 on Monday from N44 recorded on Friday.

Meanwhile, Nigeria’s gross external reserves crossed the $50 billion mark, rising by $83.55 million, or 0.17 percent, to $50.03 billion as of Wednesday, March 11, 2026, according to data from the Central Bank.

Higher oil prices have continued to bolster market sentiment. A report by Coronation Merchant Bank Research said Brent crude prices advanced by 11.16 percent week-on-week, rising from $91.00 per barrel to close at $101.16 per barrel amid escalating geopolitical tensions in the Middle East.

The bank noted that developments in the region heightened concerns about potential disruptions to global oil supply, increasing volatility in energy markets. Brent crude briefly surpassed the $100 per barrel threshold as traders priced in a higher geopolitical risk premium.

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The rally was further supported by fears that instability in the Middle East could threaten key oil transit routes and energy infrastructure, raising the possibility of supply interruptions in the near term. These concerns triggered stronger buying activity in oil futures markets and contributed to the sharp upward movement in prices during the week.

Brent crude currently holds a year-to-date return of 69.50 percent, with a running average price of $71.53 per barrel.

Similarly, Bonny Light crude strengthened by 14.17 percent week-on-week, climbing from $90.82 per barrel to close at $103.69 per barrel. The increase in Nigerian crude prices broadly mirrored the rise in global oil benchmarks as supply risks supported stronger pricing across light sweet crude grades in the Atlantic Basin.

Bonny Light has recorded a year-to-date return of 63.50 percent, with a running average price of $74.20 per barrel.

Analysts at Financial Markets Dealers Association said that although the Iran conflict triggered outflows from emerging market assets globally, Nigeria still recorded modest portfolio inflows as investors sought higher-yielding opportunities. The inflows helped support liquidity in the foreign exchange market and contributed to the naira’s recovery during the week.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.