Naira gains across official and parallel markets, closes week stronger

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The naira appreciated against the dollar across both the official and parallel foreign exchange markets on Friday, closing the week on a positive note. Central Bank of Nigeria data showed the naira firmed to N1,337.29 on Friday from N1,338.59 on Thursday at the official market, a day-on-day gain of N1.30.

At the black market, the naira strengthened by N7 to close at N1,400 on Friday, down from N1,407 the previous day. Abubakar Hassan, a Bureau de Change operator in Wuse Zone 4, Abuja, confirmed the parallel market rate.

Week-on-week performance

On a week-on-week basis, the naira gained N9.20 and N5 across the official and parallel foreign exchange markets, respectively. The steady improvement reflects continued demand for the local currency as liquidity improves in the FX market.

Foreign reserves keep rising

The positive momentum comes as Nigeria's foreign reserves sustained their rise, hitting $53.31 billion as of August 27, 2026, according to the apex bank's data. The build-up in reserves provides a buffer for the central bank to defend the naira and smoothen supply in the FX market.

For Nigerian businesses and consumers, a steadier naira could mean more predictable pricing for imported goods and a reduction in exchange rate losses for companies that rely on dollar-denominated transactions. However, sustained gains will depend on continued reserve accumulation and improved dollar supply in the coming weeks.

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