The naira weakened against the U.S. dollar in both official and parallel foreign exchange markets on Wednesday, shortly after the Central Bank of Nigeria (CBN) announced a series of significant policy changes aimed at reforming the foreign exchange system.
According to CBN data, the official exchange rate depreciated to N1,386.71 per dollar, a N4.08 drop from Tuesday’s rate of N1,382.63. In the parallel, or black, market, the naira fell by N10 to trade at N1,420 per dollar, down from N1,410. These declines occurred as the country’s gross external reserves saw a marginal reduction, falling to $49.57 billion on March 24, 2026, from $49.61 billion the day before.
The currency’s depreciation coincided with the implementation of two key directives from the apex bank. In a circular issued on Wednesday, the CBN permitted international oil companies (IOCs) operating in Nigeria to repatriate 100 percent of their export earnings. This reverses a previous requirement that forced IOCs to sell a portion of their dollar earnings in the local market. Separately, the CBN mandated all international money transfer operators (IMTOs) to route all diaspora inflow transactions through designated naira settlement accounts in commercial banks, a move designed to increase transparency and formalise forex inflows.
These measures are part of a broader policy shift by the CBN under Governor Olayemi Cardoso, which includes a move towards a more market-determined exchange rate. The central bank formally floated the naira in June 2024, abandoning a previous multiple-rate system, and has since sought to attract foreign capital and clear a backlog of unmet forex demand.
Analysts note that the immediate market reaction suggests a period of adjustment as new policies are stress-tested. The decision to allow full repatriation for IOCs is expected to improve investor confidence and potentially increase foreign exchange supply in the medium term. However, the immediate effect of the simultaneous announcements, coupled with the slight dip in reserves, appears to have triggered short-term selling pressure and a search for dollars across all market segments.
The CBN’s actions signal a determined push to unify Nigeria’s fragmented forex markets and attract stable foreign inflows. The effectiveness of these specific policies in sustainably strengthening the naira will depend on their execution, the response from international investors and remittance channels, and broader global commodity price trends. Market participants will be closely monitoring forex trading volumes and reserve movements in the coming weeks for signs of lasting stability.
