The Pound maintains steady levels against the Naira as Nigeria’s FX market shows stability, supported by rising reserves and easing inflation

The British Pound maintained a steady position against the Nigerian Naira as the first full trading week of March 2026 closed, reflecting a foreign exchange market that analysts describe as relatively stable.

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Data from the Nigerian Foreign Exchange Market (NFEM) and informal trading channels on Friday, March 6, indicate that the Naira is experiencing modest fluctuations, supported by Nigeria’s strongest external reserves in over a decade.

In the official NFEM window, the Naira opened at approximately 1,850.30 per Pound Sterling, briefly rising to 1,852.32 before settling around 1,850.29 by 6:00 a.m. West African Time.

Market observers say the stable movement is a result of transparency under the “willing-buyer, willing-seller” framework guiding official FX transactions.

Although the Naira recorded a slight week-on-week weakening against the Pound, liquidity in the official market remains robust, with the Central Bank of Nigeria prioritising the clearance of legitimate foreign exchange demands.

In the parallel market, the Pound traded between 1,865 and 1,878 Naira, narrowing the gap between official and informal rates to about 1.2 to 1.5 per cent, a tighter spread than previously observed.

Traders report steady demand driven by personal travel and academic remittances, with little evidence of speculative panic buying.

Several macroeconomic factors are supporting the Naira.

Nigeria’s gross foreign reserves reached approximately 50.45 billion dollars during the week, the highest in 13 years, providing nearly ten months of import cover.

Additionally, headline inflation has declined to 15.10 per cent following ten consecutive months of easing, helping strengthen the Naira’s real value.

Monetary policy developments are also influencing market expectations.

Following a 50-basis-point cut in the Monetary Policy Rate to 26.5 per cent last month, analysts interpret the adjustment as a signal of improving macroeconomic stability rather than a threat to the currency.

Increased domestic refining capacity is further reducing the country’s reliance on fuel imports, easing demand pressure on foreign currency.

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Analysts expect the Pound-to-Naira exchange rate to remain within a narrow official range of 1,845 to 1,860 for the remainder of the trading day, with attention focused on the continued accumulation of reserves and Central Bank stabilisation policies.