Naira Depreciates as Dollar Demand Surges in Nigeria

On September 9, 2026, the naira depreciated to N1,329.21 per dollar at the Nigerian Foreign Exchange Market (NFEM), down from N1,320.25 the previous day, marking a decline of approximately N8.97 in one trading session. Market participants attributed this decline to a shortage of dollar supply amid rising demand for foreign currency.

During the trading session, the dollar was quoted between N1,321.50 and N1,334, indicating ongoing market volatility. Interbank foreign exchange turnover surged to $94.43 million from $55.60 million, a 70% increase, with the number of transactions rising from 58 to 86.

Additionally, Nigeria's foreign exchange reserves increased to $54.283 billion, reflecting continued contributions from various sources. Analysts suggest that reserves could surpass $55 billion soon, bolstered by elevated international oil prices, which rose above $100 per barrel due to geopolitical tensions affecting global crude supply.