Naira slips to N1,329.15 as JPMorgan adds Nigeria to bond index

The naira closed at N1,329.15 per dollar on Tuesday, down N2.85 or 0.2% from N1,326.30 the previous day at the official NFEM window, according to Central Bank of Nigeria figures.

The small retreat came as JPMorgan added Nigerian local-currency government bonds to its newly launched Government Bond Index-Emerging Markets Edge (GBI-EM Edge), giving Nigeria a 7.4% weighting.

Turnover jumps 174%

Despite the weaker close, trading activity surged in the interbank market. Turnover climbed 174.16% to $262.12 million, up from $95.61 million on Monday. The number of transactions rose to 172 from 109.

Index inclusion and what analysts expect

The GBI-EM Edge index tracks local-currency sovereign debt from frontier markets. It covers roughly $328 billion across 26 countries and carries an 8% cap per country. The inclusion is expected to improve the visibility of Nigeria's domestic debt market among global investors and could support increased foreign portfolio flows into the local-currency bond market.

Analysts at Coronation Merchant Bank expect the naira to remain relatively stable in the short term, supported by the improvement in Nigeria's external reserves. They also said the inclusion of Nigerian local-currency bonds in the FTSE Russell index could provide additional support for the naira over the medium to long term.

Analysts say foreign investors have not yet moved funds into Nigerian bonds despite the JPMorgan announcement.

Mixed week across FX markets

Coronation Merchant Bank's report said the naira recorded mixed movements across the foreign exchange market last week, with the official exchange rate weakening while the parallel-market rate appreciated.

At the official market, the naira lost 0.40% week-on-week, with the dollar closing at N1,326.52 compared with N1,321.22 recorded in the previous week. The currency posted its weakest daily performance on Wednesday, September 9, 2026, when the official exchange rate fell to N1,329.21 per dollar.

In the parallel market, the naira strengthened. The dollar rate declined to N1,385.00 from N1,390.00 a week earlier, a 0.36% week-on-week improvement.

The movement in both markets reduced the gap between the official and parallel-market rates. The parallel-market premium narrowed to N58.48 per dollar from N68.78 in the preceding week, although the difference between the two exchange rates remained substantial.

What it means for the naira

Foreign portfolio flows into local-currency bonds would add dollar supply to the market. For now, the naira is finding support from reserves and the narrowing parallel-market premium, not from index-driven inflows.