Naira falls to N1,329.21 per dollar as dollar supply dries up

The naira weakened to N1,329.21 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, September 9, 2026, down from N1,320.25 the previous day. The move represents a decline of about N8.97 against the dollar in a single trading session.

Market participants blamed a shortfall in dollar supply, which collided with fresh demand for foreign currency and cut short the naira's recent rally. Central Bank of Nigeria (CBN) data confirmed the weaker close.

Supply gap drives volatility

FX traders at Broadstreet told MarketForces Africa that the market faced a dollar shortfall on the supply side, putting renewed pressure on the local currency. Quotes during Wednesday's session ranged between N1,321.50 and N1,334 at the NFEM window, a spread that shows how volatile pricing stayed through the day.

The weakness followed a strong run for the naira over the past week, when increased foreign exchange inflows and softer demand pressures supported the currency. Those gains have now been partly reversed.

Turnover jumps 70% as deals rise

Activity at the official market picked up sharply even as the naira lost ground. Interbank foreign exchange turnover climbed to $94.43 million from $55.60 million the previous day, an increase of about 70%.

The number of interbank FX transactions also rose, from 58 deals on Tuesday to 86 deals on Wednesday. The higher volume points to stronger activity among financial institutions as players adjusted to changing dollar supply and demand conditions.

Reserves climb, oil crosses $100

Nigeria's gross external reserves continued to strengthen, rising to $54.283 billion from $54.208 billion. The increase reflects continued additions to the country's foreign exchange buffers from various sources.

Some analysts believe the reserves could cross the $55 billion mark within weeks if the current momentum holds, especially with international oil prices elevated.

Global oil prices surged above $100 per barrel on Wednesday for the first time since July after attacks on oil facilities and ships in the Middle East raised concerns about disruptions to crude supply. Brent crude, the international benchmark, rose nearly 3% to $100.72 per barrel, while US benchmark crude gained 2.4% to $95.25.

In an earlier report, Nigeria's external reserves crossed $52.25 billion last week, the highest level in 17 years, while the naira held steady across the official and parallel markets. CBN figures showed the naira appreciated by N8.08 against the dollar over that week, closing at N1,357.61 per dollar at the NFEM on Friday.

For Nigerian businesses and consumers, the fall signals that the currency's recovery remains fragile and tied to how quickly dollar supply returns to the official window. Stronger reserves and higher oil prices offer support, but the Wednesday session showed that demand can still outrun supply and push the rate higher.