Naira gains 31 kobo against dollar as Nigeria's FX reserves cross $54bn

The naira appreciated by 31 kobo against the US dollar at the official NAFEM window on Tuesday, September 8, 2026, closing at N1,320.25/$1. Nigeria's gross foreign exchange reserves have also crossed $54 billion for the first time since December 2008.

The official closing rate compares with N1,320.56/$1 in the previous session, representing a gain of 31 kobo or 0.02% for the local currency.

Mixed performance across currencies

Against the pound sterling, the naira slipped by N1.69, ending the session at N1,789.86/£1 compared with N1,788.17/£1 previously.

The naira fared better against the euro, gaining 89 kobo to close at N1,534.52/€1.

Outside NAFEM, rates held firm. The naira traded at N1,330/$1 at the GTBank forex counter and remained at N1,375/$1 in the parallel market.

Reserves hit $54.08bn

Nigeria's gross reserves rose to $54.08 billion as of September 3, 2026, the first time the figure has surpassed $54 billion since December 2008. Reserves have grown by about $8.6 billion since the start of the year, strengthening the Central Bank of Nigeria's capacity to manage FX demand and shore up market confidence.

Market analysts said the local currency is expected to stay broadly stable in the short term, citing the recovery in Nigeria's external reserves and relatively contained exchange-rate pressure as key supporting factors.

Analysts see N1,300 to N1,350 band

Analysts at Coronation said they expect the NAFEM exchange rate to trade within the N1,300 to N1,350/$1 band. They cautioned, however, that a sharp drop in oil prices, a deterioration in global risk appetite, or other adverse external shocks could put the naira under pressure.

Here is how the naira performed against selected currencies in the NFEM market on Tuesday: CFA at N2.34, Yuan/Renminbi at N196.74, Danish krone at N205.27, Euro at N1,534.52, Yen at N8.58, Riyal at N351.58, South African rand at N82.52, SDR at N1,812.26, Swiss franc at N1,630.94, Pound sterling at N1,789.86, US dollar at N1,320.25, and WAUA at N1,810.97.

Earlier, the Central Bank of Nigeria's July 2026 Business Expectations Survey showed that Nigerian businesses expect the naira to gradually gain ground against the US dollar between now and January 2027. The apex bank said the overall Business Confidence Index came in at 5.7 points in July 2026, reflecting continued positive sentiment among formal businesses despite ongoing macroeconomic pressures.

For the naira, the rising reserves buffer gives the CBN more room to defend the currency in the near term. But with oil prices and global investor sentiment flagged as risks, the stability could depend on external conditions holding steady.