Naira Strengthens Against Pound, Dollar, Euro, CBN Releases New Exchange Rates
- The naira gained ground against the pound, dollar and euro in the official FX market on Wednesday, September 2, 2026
- Bloomberg-cited analysts project the naira could achieve its strongest annual performance since 2018
- Nigeria's external reserves climbed to $53.9 billion, their highest level in 18 years
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian naira recorded gains against the British pound, the US dollar, and the euro in the official foreign exchange market on Wednesday, September 2, 2026, continuing a run of positive performance that analysts say could mark the currency's best annual showing in nearly a decade.
At the Nigerian Foreign Exchange Market (NFEM), the naira appreciated by N2.74, or 0.21%, against the dollar to close at N1,326.69 per dollar, compared with N1,329.43 recorded in the previous session.
Source: Getty Images
Against the pound sterling, the naira gained N9.02 to settle at N1,791.16 per pound, down from N1,800.18 the day before.
The euro also moved in the naira's favour, with the rate falling N3.58 to N1,538.43 per euro.
At GTBank's forex counter, the naira improved by N5 against the dollar to close at N1,338, though it remained flat at N1,375 in the parallel market.
Naira Eyes Best Annual Performance Since 2018
According to analyst projections cited by Bloomberg, the naira is on course to record its strongest annual performance in almost a decade.
The currency has already gained roughly 8% this year and is forecast to strengthen further to N1,290 per dollar by the end of 2026, which would push its full-year appreciation to close to 12%.
Key drivers behind the currency's recovery include higher oil revenues, growing remittance inflows, and increased foreign investor interest.
These factors have also helped lift Nigeria's external reserves to $53.9 billion, their highest point in 18 years.
The Central Bank of Nigeria (CBN) now has greater capacity to defend the naira and cushion any shocks tied to the upcoming election season.
Source: Getty Images
CBN Reforms and Upcoming Market Catalyst
The CBN has continued to push for more transparent price discovery and market-driven exchange rates across official channels, a policy shift that has contributed to improved liquidity conditions.
Trading in the naira-pound pair has entered a narrower range, with the pound hovering around the N1,800 level.
Technical support for the naira sits at N1,780 per pound, while resistance is seen around N1,840, with a stronger barrier between N1,880 and N1,900.
Nigerian businesses predict naira will appreciate against dollar
Earlier, Legit.ng reported that Nigerian businesses expect the naira to gradually gain ground against the US dollar between now and January 2027, according to the Central Bank of Nigeria's (CBN) July 2026 Business Expectations Survey, released on Thursday, August 7.
The apex bank said the overall Business Confidence Index (BCI) came in at 5.7 points in July 2026, reflecting continued positive sentiment among formal businesses despite ongoing macroeconomic pressures.
Three factors dominated businesses' reasons for optimism. Increased demand accounted for 22.3% of responses.
Source: Legit.ng
