The naira strengthened across Nigeria’s official and parallel foreign exchange markets in the week ended Friday, September 25, 2026, as stronger external buffers and relatively stable dollar supply supported the currency.
At the Nigerian Foreign Exchange Market (NFEM), the naira moved from the ₦1,331.20 per dollar rate recorded at the close of trading on Friday, September 18, 2026, to ₦1,326.06/$ by Friday, September 25, 2026.
On Monday, September 21, the official market closed at ₦1,329.80/$, according to AIICO Capital data reported that day. The naira subsequently strengthened during the week, with the NFEM rate reaching about ₦1,326.06/$ on Friday.
In the parallel market, the dollar was quoted at about ₦1,390/$ for selling on Monday, September 21, 2026, according to market reports, before easing to between ₦1,374 and ₦1,380/$ by Friday, September 25, 2026.
The movement narrowed the gap between the two markets to roughly ₦48–₦54 per dollar by Friday, compared with about ₦60–₦64 at the beginning of the week.
Official-market activity also increased during the week. On Wednesday, September 23, 2026, NFEM turnover rose to about $279.2 million from $99.2 million previously, representing an increase of 181.5%, according to data reported by Vanguard on September 24, 2026.
The stronger external position provided another important buffer for the currency. Central Bank of Nigeria (CBN) Governor Olayemi Cardoso said on Tuesday, September 22, 2026, that Nigeria’s gross external reserves stood at $55.25 billion as of Friday, September 18, 2026, the highest level in 18 years and sufficient to finance 11.3 months of imports of goods and services.
The $55.25 billion figure supersedes the $54.61 billion reserve position reported for September 14, 2026. The two figures refer to different dates, with the later figure reflecting continued accumulation during September, 2026.
Oil production has also improved. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in a statement dated September 13, 2026 reported that Nigeria produced an average of 1.678 million barrels of crude oil and condensate per day in August 2026, up 0.4% from July.
Crude oil production excluding condensate averaged 1.500 million barrels per day, allowing Nigeria to meet its OPEC quota for the fourth consecutive month. NUPRC attributed the improvement partly to the resolution of operational challenges at the Erha field and the restoration of normal production and evacuation activities.
The CBN also adjusted monetary policy during the week. At its 307th Monetary Policy Committee meeting held on September 21 and 22, 2026, the apex bank reset the Monetary Policy Rate from 26.5%, to 23% and recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR.
The rate decision came against the backdrop of improved foreign-exchange conditions. The CBN said in its September 22 monetary policy communication that foreign-exchange pressures had receded and external buffers had strengthened.
For businesses, the naira’s weekly appreciation reduces the immediate naira cost of dollar-denominated obligations for importers and other companies that require foreign currency. However, the continued premium in the parallel market shows that dollar demand remains above the level reflected in the official market.
The week’s performance therefore points to improved foreign-exchange conditions rather than the end of Nigeria’s currency pressures. Reserve accumulation, oil earnings, foreign capital flows, remittances, monetary policy and demand for dollars will remain important factors for the naira as the market enters the final quarter of 2026.
