Naira strengthens in official market to N1,329 per dollar

The Nigerian naira has shown signs of strengthening in the official foreign exchange market, reaching its strongest level against the US dollar since May 2024. As of early September 2026, the naira was quoted at approximately N1,329 per dollar at the Nigerian Foreign Exchange Market (NFEM), supported by improved liquidity and a rise in Nigeria’s external reserves, which reached roughly $53.8 billion by the end of August.

Despite the gains in the regulated market, a significant gap persists between official and parallel market rates. In the parallel (black) market, the dollar continues to trade at higher prices, with rates reported between N1,400 and N1,415 per dollar. This disparity reflects the different supply and demand dynamics between the regulated banking system and informal dealers.

Trading activity in the NFEM also saw a notable increase in August, with total turnover rising to $14.45 billion, up from $12.69 billion in July. This surge in market activity was accompanied by higher interbank trading volumes, signaling increased engagement within the official foreign exchange window.