Nigeria’s naira strengthened over the week to close at about ₦1,337 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday, August 28, 2026, while the country’s external reserves rose to $53.112 billion, their highest level in more than 17 years.
According to data from the Central Bank of Nigeria (CBN) reported by Vanguard on August 28, the naira closed at ₦1,337/$ on Friday, compared with ₦1,349.99/$ on Monday, August 24. That represents a weekly appreciation of about 0.96%.
The currency, however, weakened slightly on Friday from ₦1,336/$ on Thursday. Vanguard reported that the naira lost about ₦1 against the dollar during Friday’s trading session.
In the parallel market, the naira strengthened to ₦1,403/$ on Friday from ₦1,407/$ on Thursday, narrowing the gap between the parallel and official markets to about ₦66/$, Vanguard reported.
Nigeria’s external reserves also continued to build. Nairametrics reported on August 27, citing CBN data, that reserves reached $53.112 billion on August 24, up from $49.96 billion on June 3. The increase amounted to about $3.15 billion in 82 days.
Business Post Nigeria reported on August 28 that the latest reserve position was the highest since January 12, 2009, when reserves stood at about $53.25 billion. The current figure is therefore about $142 million below that level.
Foreign exchange turnover, meanwhile, fell sharply during the week. Africa Business News reported, citing CBN data, that weekly NFEM turnover declined 48.7% to about $2.71 billion from approximately $5.28 billion in the previous trading week.
The market was closed on Tuesday, August 25, because of a public holiday. Vanguard also reported that interbank turnover fell 31.8% to $130.7 million on Friday from $191.7 million on Thursday.
The naira’s weekly gain came alongside a more positive assessment of Nigeria’s external position. On Friday, August 28, Moody’s revised Nigeria’s sovereign outlook to positive from stable while affirming the country’s B3 rating.
Reuters reported that Moody’s cited Nigeria’s stronger foreign-exchange reserves, better-than-expected economic growth and improved ability to withstand external shocks. The rating agency also pointed to stronger crude oil earnings and rising exports of refined petroleum products.
Analysts at Cowry Asset Management told Vanguard that the near-term outlook for the naira and external reserves remained broadly positive, supported by improved FX liquidity and continued reserve accumulation. They identified weaker oil prices and geopolitical uncertainty as key downside risks because Nigeria remains heavily dependent on crude oil earnings for foreign-exchange inflows.
CBN Governor Olayemi Cardoso had earlier said the central bank’s FX interventions accounted for only about 1.2% to 1.3% of total FX turnover in 2025. In May, Nairametrics reported that Cardoso attributed improving market conditions to deeper liquidity, greater transparency and ongoing FX-market reforms.
The combination of rising reserves, improved FX liquidity and a narrower gap between official and parallel-market rates provides a stronger buffer for the naira. However, the currency remains vulnerable to oil-price movements, capital flows and broader global market conditions.
