The naira held around ₦1,330 to the dollar last week despite the Central Bank of Nigeria’s (CBN) 350-basis-point cut in its benchmark interest rate, with the currency remaining relatively stable at the official market.
At the Nigerian Foreign Exchange Market (NFEM), the naira’s weighted average rate moved from ₦1,329.80 per dollar on Monday, September 21, 2026, to ₦1,329.51 on Friday, September 25, according to Nairametrics in a report published on September 26. The official rate traded within a relatively narrow range of ₦1,325 and ₦1,336 during the week.
The stability came in the same week the CBN cut the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent at its 307th Monetary Policy Committee meeting held on September 21 and 22, 2026. The bank also recalibrated its Standing Facilities Corridor to +50/-300 basis points around the new MPR.
CBN Governor Olayemi Cardoso said on September 22 that gross external reserves stood at $55.25 billion as of September 18, the highest level in 18 years and sufficient to finance about 11.3 months of imports of goods and services. Premium Times reported the figures from the CBN’s MPC briefing on September 22.
The CBN said the stronger external position and reduced foreign-exchange pressures had contributed to greater stability in the currency market. The MPC also noted improvements in Nigeria’s external-sector fundamentals and investor confidence.
The rate cut followed a further moderation in inflation. The National Bureau of Statistics reported on September 15 that headline inflation fell to 15.39 per cent in August from 15.43 per cent in July. The NBS also reported that the Consumer Price Index rose to 146.3 points in August from 145.3 points in July, showing that prices continued to increase even though the inflation rate slowed.
Foreign-exchange market turnover, however, declined during the week. Nairametrics reported on September 26 that NFEM turnover fell 17.7 per cent week-on-week to $2.25 billion in the week ended September 25, from $2.74 billion the previous week. Despite the decline, total NFEM turnover for September 1 to 25 reached about $13.58 billion, above the $12.54 billion recorded throughout August.
The coming sessions will therefore test whether the naira can maintain its recent stability as the lower policy rate begins to filter through the banking system and financial markets.
