Naira Holds Steady at N1,332 Per Dollar in Official Market as Reserves Hit $53.51 Billion

The Nigerian naira opened September 2026 trading at about N1,332.44 per dollar at the official foreign exchange market, while the US currency sold for as high as N1,405 in the parallel market.

Data released by the Central Bank of Nigeria showed the local currency appreciated further on Monday, rising to N1,332.94 per dollar on the Nigerian Foreign Exchange Market, from N1,337.29 last Friday.

The sustained appreciation has been supported by Nigeria’s rising gross external reserves, which climbed to $53.51 billion as of August 28, representing the highest level in more than 17 years. “The reserve accretion has accelerated since June with the apex bank data showing that reserves increased from $49.96 billion on 3 June to $53.51 billion on August 28,” analysts noted.

At the parallel market, currency dealers in Lagos, Abuja, and Kano quoted the dollar at between N1,390 and N1,415, depending on whether the transaction involves buying or selling. The buying rate stood at N1,390 while the selling rate was N1,405.

This translates to a gap of roughly N60 to N80 between the official NFEM rate and the parallel-market price. The Central Bank of Nigeria does not recognise the parallel market, as it has directed individuals who want to engage in forex to approach their respective banks.

Analysts at Quest Merchant Bank noted that “the rise in sectoral FX utilisation reflects improved FX liquidity in the economy, supported by the stronger position of Nigeria’s gross external reserves”. They also anticipate “stronger FX utilisation across sectors, supported by the CBN’s ongoing reforms and policy measures aimed at sustaining FX supply, deepening market liquidity and preserving confidence in the naira”.

The naira has maintained an upward trend against the dollar on the official market since August 24, when it stood at N1,346.98 per dollar. The sustained accumulation of reserves has been supported partly by stronger oil earnings and increased dollar inflows into the economy.