NAIRA STRENGTHENS FURTHER AS DOLLAR FALLS TO N1,329 AT OFFICIAL MARKET

The Nigerian naira has continued its recent recovery against the United States dollar, trading at N1,329.43/$1 at the official Nigerian Foreign Exchange Market (NFEM) on Wednesday, September 2, 2026.

The latest rate, based on data from the Central Bank of Nigeria, came after the naira closed at approximately N1,329 per dollar on Tuesday, September 1, marking another improvement for the local currency in the official foreign exchange market.

The movement represents a notable strengthening of the naira, with the currency breaking below the N1,330/$ threshold. The September 1 closing level was also reported as the naira's strongest position against the dollar since May 29, 2024, when it closed around N1,329.65/$.

At the latest official rate, $100 is equivalent to about N132,943, highlighting the current value of the naira in the formal foreign exchange market.

The naira's recent gains have coincided with an improvement in Nigeria's external reserves and increased confidence in the foreign exchange market. Nigeria's reserves reportedly reached about $53.8 billion at the end of August, providing a stronger foreign-exchange buffer for the economy.

Parallel Market Rate Remains Higher

Despite the naira's improvement at the official market, the currency continues to trade at a weaker level in the parallel market.

According to figures cited by News Central, the dollar was being bought for around N1,400 and sold for about N1,405 in the parallel market on Wednesday. Another market tracker, NairaToday, placed the dollar at approximately N1,410.

This leaves a noticeable gap between the official and parallel-market rates, reflecting differences in foreign exchange supply, demand and pricing among dealers operating outside the formal banking system.

Naira Maintains Recent Recovery

The latest appreciation extends a broader recovery recorded by the naira in recent weeks. The currency had strengthened from around N1,358.25/$ in mid-August to N1,349.99/$ on August 24 and N1,337/$ by August 28 before moving below the N1,330 level at the beginning of September.

The improvement has also occurred alongside increased activity in the foreign exchange market. Recent market data showed stronger FX turnover as financial institutions participated more actively in dollar transactions, while rising external reserves have provided additional support for confidence in the country's foreign-exchange position.

The continued strengthening of the naira will be closely watched by businesses, investors and consumers, particularly because movements in the exchange rate have significant implications for the cost of imported goods, production inputs and other dollar-denominated transactions.

For now, the latest official rate signals a further improvement in the naira's performance, although the difference between the formal and parallel markets shows that foreign-exchange conditions remain varied across the different segments of the Nigerian market.