Naira Gains Ground Again as Dollar Falls to ₦1,329, Reserves Hit $53.8bn
- The naira maintained its ascent against the US dollar, starting September on a strong note against the US greenback
- The Nigerian currency appreciated by roughly one per cent in the last seven days as Nigeria's external reserves hit 2009 levels
- Experts have attributed the naira's rally to renewed investors' confidence, robust reserves aided by high hydrocarbon sales by the Nigerian government
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira has extended its recent gains against the US dollar, strengthening to about ₦1,329 at the official foreign exchange market on September 1, 2026, as improved liquidity and rising external reserves provide fresh support for the currency.
The naira closed at ₦1,329.43 per dollar on September 1, compared with ₦1,332.94 the previous trading day, according to data from the Central Bank of Nigeria (CBN).
Source: Getty Images
The latest move extends the currency’s steady performance over the past week. The naira traded around ₦1,343 per dollar on August 26 before strengthening to about ₦1,337 by August 28 and ₦1,329.43 by September 1.
That represents an appreciation of roughly 1 per cent in about a week, signalling continued improvement in the official foreign exchange market.
FX turnover rises as naira strengthens
The latest appreciation came alongside stronger activity in the Nigerian Foreign Exchange Market (NFEM), with financial institutions increasing their participation.
NFEM interbank foreign exchange turnover climbed to $130.45 million on September 1, up from $105.64 million the previous day. The number of recorded FX transactions also increased from 118 to 139.
The rise in turnover points to increased market activity and improved dollar availability, although trading within the day remained relatively tight, with transactions conducted between ₦1,327 and ₦1,335.50 per dollar.
The development follows stronger activity across the official FX market in August. NFEM recorded about $14.45 billion in turnover during 19 trading days, representing a 13.8 per cent increase from $12.69 billion in July.
External reserves provide another boost
Nigeria’s external reserves have also strengthened significantly, providing a larger dollar buffer for the economy and potentially supporting confidence in the naira.
The country ended August with gross external reserves of about $53.806 billion, according to the figures cited in the original report. Earlier CBN data had already shown reserves crossing $53 billion, reaching $53.112 billion on August 24, the highest level in more than 17 years and close to the January 2009 record of $53.25 billion.
The reserve build-up has accelerated in recent months. CBN data showed reserves rising from $49.96 billion on June 3 to $53.11 billion by August 24, an increase of about $3.15 billion, according to a report by MarketForces Africa.
Naira outlook remains positive
The combination of stronger reserves, increased FX market activity and improved liquidity has strengthened the outlook for the naira.
Source: Getty Images
The currency has already moved beyond the ₦1,350 year-end target cited by some market analysts, with the latest official rate around ₦1,329 per dollar.
However, the rally does not mean the dollar has become cheaper across every Nigerian FX market. The parallel market was still quoting the greenback around ₦1,400 to ₦1,410 on September 2, leaving a significant gap between official and informal rates.
For businesses, importers and consumers, sustained naira gains could gradually reduce the local-currency cost of dollar-denominated obligations. But maintaining the momentum will depend on continued dollar inflows, reserve accumulation, market liquidity and stable demand for foreign exchange.
Dollar falls against naira as FX turnover more than doubles
Legit.ng earlier reported a recent rise of the naira against the US dollar, which strengthened by 0.84%, closing at N1,346.90/$ amid a surge in foreign exchange turnover to $4.52 billion.
This significant uptick in the naira’s value signals a pivotal moment for Nigeria’s economy, with external reserves climbing to levels not seen since 2009, raising hopes for sustained financial stability.
Source: Legit.ng
