The British Pound Sterling began the second full trading week of March 2026 with a noticeable gain against the Nigerian Naira on Monday as pressure on the local currency persisted in the foreign exce market.
Early trading data from the Nigerian Foreign Exce Market showed that the naira opened at about 1846.10 per pound. Market activity during the early hours saw moderate volatility as the rate climbed to a high of 1852.28 before rising further to around 1856.06 by 6 am West Africa Time. The movement represents about a 1.62 percent depreciation of the naira during the early trading session.
Market participants say the pressure on the naira is partly driven by stronger demand for major global currencies as investors seek safe assets amid rising geopolitical tensions, particularly the ongoing conflict in the Middle East.
Currency dealers in the official market noted that the current exce rate trend reflects ongoing adjustments following recent monetary policy ces by the Central Bank of Nigeria. The apex bank recently reduced the Monetary Policy Rate to 26.5 percent, prompting some recalibration in currency valuations across the market.
The official mean exce rate for the day is currently hovering near 1851.40 per pound as the market attempts to balance corporate demand with available foreign exce supply.
In the parallel market, the pound is trading slightly higher, with rates ranging between 1865 and 1880 per pound in major trading hubs such as Lagos and Abuja. Despite the difference between both markets, the spread remains relatively narrow at about 1.3 percent.
Foreign exce traders say Monday mornings often witness increased demand for foreign currency due to payments for school fees abroad, travel allowances and other international transactions. However, dealers reported that the current market activity does not reflect the panic buying seen in previous periods of currency inility.
Analysts attribute the relative ility to continued foreign exce supply to Bureau De Ce operators and improved external reserves, which currently stand at about 50.45 billion dollars.
Experts also point to increased domestic refining capacity in Nigeria’s energy sector, which has reduced the need for foreign exce used for petroleum imports. This development is helping cushion the naira against external economic shocks.
Market analysts expect the pound to trade between 1845 and 1865 per pound in the official market as investors await further liquidity updates from the Central Bank later in the week.
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