The naira ended the trading week on Friday, 4 September 2026, stronger against the US dollar in the official market, extending its recent recovery as Nigeria’s external reserves climbed to about $54.08 billion, the highest level in over 18 years.
Data attributed to the Central Bank of Nigeria (CBN) showed that the naira closed at ₦1,321.22/$ on Friday, compared with about ₦1,332.94/$ at the start of trading on Monday, 31 August, representing an appreciation of roughly 0.9 per cent during the week. Market data also showed the currency traded at its strongest level in more than two years during the week.
On Thursday, 3 September, the naira strengthened to ₦1,315.67/$, according to CBN-linked exchange-rate data reported by Nigerian media. The rate was the currency’s strongest official-market level since April 2024 and represented an improvement of ₦11.02 from ₦1,326.69/$ recorded on Wednesday, 2 September.
The currency subsequently weakened slightly on Friday, closing at ₦1,321.22/$, according to CBN-linked data. The rate remained below the level recorded at the beginning of the week, meaning the naira still finished the five-day period stronger overall.
The parallel market also remained above the official rate, although quotations varied among dealers and locations. Market-tracking data showed dollar buying and selling rates around ₦1,395 and ₦1,405, respectively, in mid-week trading. Such parallel-market figures are indicative rather than official CBN rates.
The naira’s performance came as Nigeria continued to build its foreign-exchange reserves.
Available reports citing CBN data put Nigeria’s external reserves at approximately $54.08 billion as of Thursday, 3 September 2026. The figure marks a significant increase from the reserve levels recorded earlier in the year and provides a larger foreign-currency buffer for the economy.
The combination of stronger reserves and improved foreign-exchange liquidity has supported the naira’s recent recovery. Higher reserves can strengthen confidence in Nigeria’s ability to meet external obligations, although the exchange rate remains influenced by dollar supply and demand, foreign-exchange inflows and broader market conditions.
For businesses and households, a sustained naira recovery could gradually reduce the naira cost of dollar-denominated transactions and imported goods. However, the gains recorded during the week do not by themselves establish a permanent reversal of the naira’s longer-term volatility.
