[REVISION HISTORY]

Nigeria Naira exchange rate dynamics

Updated 17 times since CLSTR started tracking revisions of this situation.

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2026-09-03 11:06 UTC → 2026-09-05 00:44 UTC · added ~~removed~~

By early September 2026, the naira showed signs of strengthening in the official Nigerian Foreign Exchange Market (NFEM), reaching approximately ₦1,329 per US dollar. This represents its strongest level against the dollar since May 2024, supported by improved liquidity and an increase in Nigeria’s gross external reserves, which rose to roughly $53.8 billion by the end of August. This upward momentum is bolstered by significant formal remittance inflows; the Central Bank of Nigeria reported that monthly remittances through international money transfer operators reached nearly $1 billion in July. Furthermore, elevated oil prices have led to projections that external reserves could reach record levels, potentially exceeding $54 billion. Despite these official gains, a significant disparity persists between the regulated and informal sectors. In the parallel market, the dollar continues to trade at higher prices, with rates reported between ₦1,395 and ₦1,415 per dollar. Trading activity in the NFEM also experienced a notable surge. Total turnover in August rose to $14.45 billion, up from $12.69 billion in July, accompanied by higher interbank trading volumes. While interbank US dollar turnover has recently moderated, some analysts project the exchange rate could reach ₦1,300 in 2026 due to the ongoing rally. This aligns with previous long-term projections from MDU Capital Limited, which suggested the naira could strengthen to below ₦1,000 per dollar within a year based on a fair value estimate of ₦984.7. On September 3, 2026, Nigeria’s external reserves reached $54.08 billion, marking an 18-year high. This accumulation, representing a growth of approximately $8.51 billion since the start of the year, has been driven by increased foreign exchange inflows and improved oil production. The strengthening of these financial buffers has coincided with the naira's appreciation in the NFEM, though the parallel market remains higher, with the US dollar trading around ₦1,400 to ₦1,410.

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