The naira began April 2026 on a stronger footing, appreciating across foreign exchange market segments as improved liquidity, supported by recent remittance reforms, helped lift the local currency despite declining external reserves.

Data from the Central Bank of Nigeria showed the naira gained N8.02, or 0.58 percent, to close at N1,378.70 per dollar on Wednesday, compared to N1,386.72 on Tuesday at the Nigerian Foreign Exchange Market (NFEM). In the parallel market, the naira also strengthened by N5, or 0.35 percent, to close at N1,410 per dollar on the first trading day of April, from N1,415 the previous day.

The spread between the official and parallel market rates, however, widened to N32 per dollar, from N29 recorded on Tuesday. Nigeria’s external reserves continued their downward trend, declining for the 11th consecutive day by $730 million to $49.29 billion as of March 30, 2026, representing a 1.46 percent drop, according to CBN data.

Currency traders say recent policy measures by the CBN are beginning to improve FX supply, particularly in the remittance segment. The apex bank has directed all International Money Transfer Operators (IMTOs) to route remittance transactions through designated naira settlement accounts in banks, a move aimed at boosting transparency and channelling more foreign exchange into the formal market.

Data from the National Bureau of Statistics (NBS) showed capital inflows into Nigeria rose by 7.1 percent quarter-on-quarter and 26.6 percent year-on-year to $6.4 billion, the highest level since the first quarter of 2019. Total offshore inflows for 2025 reached $23.2 billion, broadly in line with forecasts of $23.3 billion. Remittance inflows have become an increasingly important source of foreign exchange. Historically, IMTO flows accounted for between 2 and 5 percent of total FX inflows between 2019 and 2021, rising to between 8 and 12 percent from 2022 to 2024, and standing at about 6.7 percent in 2025, according to analysts at FMDQ.

The latest gains suggest early signs that policy efforts to deepen liquidity in the official market may be gaining traction, even as pressure from declining reserves continues to pose risks to sustained currency stability. The naira depreciated across all foreign exchange (FX) market segments in March 2026, as external reserves fell and oil prices surged amid escalating geopolitical tensions in the Middle East. According to Central Bank data, the naira lost 0.63 percent, closing at N1,386.72 to the dollar on March 31, 2026 down from N1,378.02 at the start of the month at the NFEM.