Naira gains to ₦1,329.43 per dollar as Nigeria’s reserves hit $53.8bn, strengthening the country’s foreign exchange buffer

The Nigerian naira gained further ground against the United States dollar in Lagos on Tuesday, September 1, 2026, while Nigeria’s external reserves climbed to about $53.8 billion, reinforcing the currency’s recent recovery in the official foreign exchange market.

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The naira closed at ₦1,329.43 to the dollar at the Nigerian Foreign Exchange Market, compared with ₦1,332.94 on the previous trading day, according to data attributed to the Central Bank of Nigeria. The latest movement extends a steady run of gains recorded since late August.

The currency had traded around ₦1,343 per dollar on August 26 before strengthening towards ₦1,337 by August 28 and reaching ₦1,329.43 on September 1. The move represents an appreciation of roughly one per cent within a week.

The improvement has coincided with stronger activity in the official foreign exchange market. Nigerian Foreign Exchange Market turnover rose to $130.45 million on September 1, from $105.64 million a day earlier, while the number of recorded transactions increased from 118 to 139.

Trading during the session remained within a relatively narrow band of ₦1,327 to ₦1,335.50 per dollar, suggesting that although dollar liquidity has improved, supply and demand conditions remain closely balanced.

The broader August figures also point to increased market activity. NFEM turnover reached approximately $14.45 billion across 19 available trading days, up 13.8 per cent from the $12.69 billion recorded in July. Average daily turnover also increased substantially during the month.

A powerful boost to the currency outlook has come from Nigeria’s external reserves. The reserve position reached about $53.806 billion at the end of August, according to figures reported from CBN data.

The latest reserve level marks a notable improvement from the beginning of 2026, when Nigeria’s external reserves stood at approximately $45.57 billion.

The increase gives the country a substantially larger foreign-currency buffer against external shocks and foreign exchange pressures.

The rise also follows a significant milestone reached in August, when reserves crossed $53 billion for the first time in more than 17 years. On August 24, the reserve stock stood at about $53.112 billion, its strongest level since January 2009.

For the naira, the stronger reserve position provides an important layer of support because a larger stock of foreign assets can strengthen confidence in Nigeria’s external position and improve the authorities’ capacity to meet foreign-currency obligations.

However, the official-market improvement has not eliminated the gap between the formal and parallel foreign exchange markets.

Recent market checks put the dollar at roughly ₦1,400 to ₦1,410 in the parallel market on September 2, considerably above the official NFEM benchmark.

The difference highlights the fact that Nigeria’s foreign exchange market is still adjusting to changing liquidity conditions, with rates varying according to the market, dealer, transaction size and prevailing demand.

The recent gains therefore offer encouraging signs, but they do not by themselves signal the end of the pressures that have weighed on the naira.

Sustaining the improvement will depend on continued foreign exchange liquidity, stronger external buffers and confidence in the direction of economic policy.

For businesses and consumers, a more stable naira could gradually ease some of the uncertainty surrounding imported goods, foreign-currency obligations and investment decisions.

The broader impact, however, will depend on whether the recent improvement can be maintained over time.

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With reserves now at a level last seen more than a decade ago and official-market trading showing increased activity, the naira enters September on a firmer footing than it held only weeks earlier.