Naira Appreciates Against Dollar as Reserves Rise

On September 8, 2026, the naira marginally appreciated against the US dollar, closing at N1,320.25/$1 on the Nigerian Foreign Exchange Market (NAFEM), up from N1,320.56/$1, marking a gain of 31 kobo or 0.02%. However, the naira depreciated against the pound sterling, closing at N1,789.86/£1, a decrease of N1.69.

It performed better against the euro, gaining 89 kobo to close at N1,534.52/€1. Outside NAFEM, the naira traded at N1,330/$1 at the forex counter and remained at N1,375/$1 in the parallel market.

Analysts indicated that the naira is expected to remain stable in the short term due to a recovery in Nigeria's foreign reserves, which reached $54.08 billion as of September 3, 2026, the highest since December 2008. Reserves have increased by approximately $8.6 billion since the beginning of the year, enhancing the Central Bank of Nigeria's ability to manage foreign exchange demand.

Analysts at Coronation forecast the naira to trade within the N1,300 to N1,350/$1 range.