Naira Firms Up as Oil Price Surge Boosts Nigeria’s Forex Position
Story: written by Zara March 17,2026
Nigeria’s currency recorded gains at the start of the week, strengthening against the US dollar at the official foreign exchange window amid rising global oil prices and renewed investor interest.
Figures released by the Central Bank of Nigeria (CBN) showed that the naira appreciated by N8.46 to close at N1,357.77 per dollar on Monday at the Nigerian Foreign Exchange Market. This marks a 0.62 percent improvement from the N1,366.23 rate recorded the previous Friday.
At the parallel market, however, the local currency remained unchanged at around N1,410 per dollar, widening the gap between official and unofficial rates to N63, compared to N44 recorded days earlier.
Nigeria’s external reserves also showed a modest increase, surpassing the $50 billion threshold. Data from the apex bank indicates reserves rose by $83.55 million to reach $50.03 billion as of mid-March 2026, reflecting improved foreign exchange inflows.
Analysts attribute the naira’s stability largely to the recent rally in global crude oil prices. According to research by Coronation Merchant Bank, Brent crude climbed significantly, rising from $91 to over $101 per barrel within a week due to escalating geopolitical tensions in the Middle East.
The surge in oil prices has strengthened market confidence, as higher crude earnings typically boost Nigeria’s foreign exchange supply. Concerns over possible disruptions to global oil supply routes and infrastructure have also fueled increased trading activity in oil markets, pushing prices higher.
Nigeria’s Bonny Light crude followed the same upward trend, gaining over 14 percent week-on-week to close above $103 per barrel, reflecting strong demand and supply-side uncertainties in the global energy market.
Experts say the continued rise in oil prices could provide short-term support for the naira, though broader economic factors will remain critical in determining long-term currency stability.
