Naira Stays Above N1,300 Despite Rising Oil Earnings

The naira has not strengthened to N1,000/$1 despite Nigeria's improved oil earnings and rising foreign exchange reserves, which reached approximately $53.9 billion as of September 1. The currency closed at N1,324.50/$ on September 2, while the parallel market rate was around N1,400–N1,410/$.

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 disconnect between dollar inflows and the naira's value is due to persistent demand for foreign exchange driven by imports and economic fundamentals. NNPC Ltd's monthly revenue increased from N2.57 trillion in January 2026 to N4.97 trillion in April, but this has not sufficiently met the demand for dollars.

Aliyu noted that higher crude oil sales do not necessarily offset the demand for imported goods, while AbdulMarouf emphasized that stronger reserves alone cannot guarantee a stronger naira without addressing broader economic issues.