The British Pound maintained its upward momentum against the Nigerian Naira during early trading on Thursday, March 12, 2026. Data from the Nigerian Foreign Exchange Market (NFEM) and informal trading channels show the Pound navigating a high-value corridor, as market participants react to shifting global sentiments and steady domestic demand for the Sterling.
Official Market Performance (NFEM)
In the official NFEM window, the Naira opened at approximately 1,867.42 per Pound. As the morning session progressed, the rate saw moderate volatility, reaching a daily high of 1,874.21 before settling at a mid-morning quote of 1,870.94 by 6:00 AM WAT. This represents a marginal 0.02% increase from the previous day’s average, signaling a period of consolidation at these higher levels.
Market turnover has remained consistent, with the Central Bank of Nigeria (CBN) continuing its “willing-buyer-willing-seller” approach. Authorized dealers report that while the Naira has softened slightly against the Pound over the first two weeks of March—climbing from 1,836.56 at the end of February—the transparency of the price discovery mechanism has prevented the kind of erratic “gapping” seen in previous fiscal years.
Parallel Market Trends
The parallel market continues to shadow the official window closely, with the Pound Sterling being exchanged at rates ranging between 1,885 and 1,898 per Pound. The spread between the official and “black market” windows remains tight, currently estimated at approximately 1.2%.
Traders in major financial hubs like Lagos and Abuja note that demand for the Pound remains seasonal, largely driven by international school fees and service sector remittances. However, the consistent supply provided to Bureau De Change (BDC) operators has successfully managed retail expectations, keeping the informal market premium at historically low levels.
Key Economic Drivers
Several fundamental factors are influencing the NGN/GBP pair this Thursday:
Foreign Reserve Strength: Nigeria’s external reserves have remained robust, recently hitting a milestone of over 50.45 billion dollars. This provides a significant cushion for the CBN to maintain stability and manage liquidity within the NFEM.
Interest Rate Sentiment: Following the reduction of the Monetary Policy Rate (MPR) to 26.50% last month, the market is currently adjusting to the high-yield environment which continues to attract portfolio investment despite the minor rate cut.
Global Sterling Performance: The British Pound has remained firm against a basket of currencies due to steady economic data from the UK, which has contributed to its relative strength against the Naira during this trading cycle.
Domestic Inflation: With headline inflation cooling to 15.10%, the real value of the Naira is seeing its best performance in years, providing a floor for the currency even during periods of moderate depreciation against the Pound.
Market analysts anticipate the Pound to Naira rate will fluctuate within the 1,865 to 1,875 range in the official window for the remainder of the week, as the market looks forward to mid-month trade balance reports.
