Naira Stays Weak Despite Rising Oil Earnings and Reserves

Despite Nigeria's improved external position due to stronger oil earnings and rising foreign exchange reserves, the naira has not strengthened significantly, remaining above N1,300 to the dollar. As of September 1, Nigeria's foreign exchange reserves reached approximately $53.9 billion.

The Nigerian National Petroleum Company Limited (NNPC Ltd) reported monthly revenues rising from N2.57 trillion in January 2026 to N4.97 trillion in April, before declining to N3.09 trillion in July. Experts, including Dr Yusha’u Aliyu from the Institute for Professional Economists and Policy Management and Dr Yusuf AbdulMarouf from the University of Abuja, explain that the naira's value is influenced by factors such as dollar demand, foreign exchange liquidity, imports, and monetary policy.

They note that higher oil revenues do not necessarily translate to a stronger naira due to ongoing high demand for imported goods and services, highlighting structural constraints in Nigeria's economy.