Significant Depreciation of the Naira
“We believe long-term, naira-denominated capital is essential for Nigeria’s infrastructure development, and UCIF is our Group’s response to bridging this gap,” stated Peter Ashade, highlighting the critical need for stable funding in the face of recent economic challenges.
On March 10, 2026, the nigerian naira recorded significant depreciation against the US dollar at the official foreign exchange market, dipping to N1,405.62 per dollar, down from N1,393.26 on March 6, 2026. This represents a drop of N12.36 against the dollar.
In the black market, the naira weakened further, reaching N1,420 per dollar on the same day. This decline follows two consecutive weeks of depreciation, raising concerns about the currency’s stability.
Nigeria’s external reserves stood at $49.94 billion as of March 6, 2026, a figure that has recently surpassed the $50 billion mark. However, the country requires around $100 billion annually to bridge its infrastructure deficit, which adds pressure on the naira.
The United Capital Infrastructure Fund (UCIF) reported a gross return of 24.62% in 2025, with a total income of ₦3.06 billion. Ashade noted, “The fund provides a vehicle for mobilising sustainable funding for key projects, ensuring predictable returns for investors while supporting the country’s economic growth.”
The naira opened at N1,398.24 per dollar on March 10, 2026, and appreciated to N1,396.24 by mid-morning. This temporary stabilization can be attributed to the Central Bank of Nigeria’s (CBN) consistent supply to Bureau De Change (BDC) operators.
According to an anonymous source, “The sustained convergence is a result of the CBN’s consistent supply to Bureau De Change operators, which has decentralised foreign exchange access and reduced the urgency for high-premium transactions in the informal sector.”
Market analysts suggest that the current phase may favour long-term capital inflows, indicating a potential shift in investor sentiment.
As the situation evolves, stakeholders will be closely monitoring the naira’s performance and the broader implications for Nigeria’s economy.